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Electronics exempted from reciprocal tariffs will soon be subject to new semiconductor tariffs instead, Netflix may be testing a search function powered by OpenAI, and Waymo will start testing its self-driving taxis in Tokyo next week. It's Monday, April 14th and this is your morning tech news roundup from Engadget Learn more about your ad choices. Visit podcastchoices.com/adchoices

The Government is being urged to clarify which areas of Clare are now exempt from hosting asylum seekers. According to new state documents, the use of several properties and hotels in Clare, Kerry, Mayo, Dublin and Donegal are being stood down due to local and political feedback, and in some cases violent protests. Over 10% of the Ennistymon Local Electoral Area's population are now Ukrainian Refugees, with the region also hosting the vast majority of the county's 1,010 International Protection Applicants. Lahinch Fine Gael Councillor Bill Slattery says local businesses need certainty.

After public pressure from members of Congress, the Office of Personnel Management said it has categorically, that's OPM word, exempted Federally Employed military spouses from the return to the office mandate. The memo is celebrated as a success in some quarters, but military spouses themselves, they're not so sure. Federal News Network's Anastasia Obis has more. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Brendan looks back at 2023 and reflects on which games are his favorite and which games deserve special recognition. Join us, won't you?Exempted from Consideration49. Evacuation (2023)Top 5 Games of 2023Nucleum (2023)Voidfall (2023)Septima (2023)Daybreak (2023)Forest Shuffle (2023)Superlative Games of 2023Best Legacy Game: Sagrada Artisans (2023)Coolest Gimmick: Faraway (2023)Most silly: DroPolter (2023)Funniest: Freelancers: A Crossroads Game (2023)Most meditative: Tipperary (2023)Best game no one wants to play with me: Fiction (2023)Awesome Components: Globetrotting (2023)2023 games I have played but did not grant awardsEarth (2023)Star Wars: The Deckbuilding Game (2023)Sky Team (2023)Age of Innovation (2023)Cosmoctopus (2023)Distilled (2023)Apiary (2023)Forbidden Jungle (2023)The A.R.T. Project (2023)Thunder Road: Vendetta (2023)After Us (2023)Nimalia (2023)Expeditions (2023)Rats of Wistar (2023)Point City (2023)That's Not a Hat (2023)Everdell Farshore (2023)Amun-Re: 20th Anniversary Edition (2023)Chicken! (2023)Bark Avenue (2023)Dungeons & Dragons: Bedlam in Neverwinter (2023)Mother of Frankenstein (2023)Smug Owls (2023)TIME Stories Revolution: Cavendish (2023)Leaf (2023)Perspectives (2023)2023 games that I want to play but haven't.Earthborne Rangers (2023)The Fox Experiment (2023)Sail (2023)My Island (2023)First in Flight (2023)Wild Tiled West (2023)City of the Great Machine (2023)Hollywood 1947 (2023)Hegemony: Lead Your Class to Victory (2023)Darwin's Journey (2023)The White Castle (2023)Ticket to Ride Legacy: Legends of the West (2023)The Vale of Eternity (2023)Knarr (2023)Stationfall (2023)Kutná Hora: The City of Silver (2023)Unmatched Adventures: Tales to Amaze (2023)What are your favorite 2023 games? Share your thinking over on Boardgamegeek in guild #3269.

Brendan looks back at 2023 and reflects on which games are his favorite and which games deserve special recognition. Join us, won't you?Exempted from Consideration49. Evacuation (2023)Top 5 Games of 2023Nucleum (2023)Voidfall (2023)Septima (2023)Daybreak (2023)Forest Shuffle (2023)Superlative Games of 2023Best Legacy Game: Sagrada Artisans (2023)Coolest Gimmick: Faraway (2023)Most silly: DroPolter (2023)Funniest: Freelancers: A Crossroads Game (2023)Most meditative: Tipperary (2023)Best game no one wants to play with me: Fiction (2023)Awesome Components: Globetrotting (2023)2023 games I have played but did not grant awardsEarth (2023)Star Wars: The Deckbuilding Game (2023)Sky Team (2023)Age of Innovation (2023)Cosmoctopus (2023)Distilled (2023)Apiary (2023)Forbidden Jungle (2023)The A.R.T. Project (2023)Thunder Road: Vendetta (2023)After Us (2023)Nimalia (2023)Expeditions (2023)Rats of Wistar (2023)Point City (2023)That's Not a Hat (2023)Everdell Farshore (2023)Amun-Re: 20th Anniversary Edition (2023)Chicken! (2023)Bark Avenue (2023)Dungeons & Dragons: Bedlam in Neverwinter (2023)Mother of Frankenstein (2023)Smug Owls (2023)TIME Stories Revolution: Cavendish (2023)Leaf (2023)Perspectives (2023)2023 games that I want to play but haven't.Earthborne Rangers (2023)The Fox Experiment (2023)Sail (2023)My Island (2023)First in Flight (2023)Wild Tiled West (2023)City of the Great Machine (2023)Hollywood 1947 (2023)Hegemony: Lead Your Class to Victory (2023)Darwin's Journey (2023)The White Castle (2023)Ticket to Ride Legacy: Legends of the West (2023)The Vale of Eternity (2023)Knarr (2023)Stationfall (2023)Kutná Hora: The City of Silver (2023)Unmatched Adventures: Tales to Amaze (2023)What are your favorite 2023 games? Share your thinking over on Boardgamegeek in guild #3269.

The former RA&W officer, who is also an accused in the Pannun assassination plot case, had got a similar exemption last November.  

NEWS: 28 DSWD programs exempted from ban | Jan. 9, 2025Visit our website at https://www.manilatimes.netFollow us:Facebook - https://tmt.ph/facebookInstagram - https://tmt.ph/instagramTwitter - https://tmt.ph/twitterDailyMotion - https://tmt.ph/dailymotionSubscribe to our Digital Edition - https://tmt.ph/digitalSign up to our newsletters: https://tmt.ph/newslettersCheck out our Podcasts:Spotify - https://tmt.ph/spotifyApple Podcasts - https://tmt.ph/applepodcastsAmazon Music - https://tmt.ph/amazonmusicDeezer: https://tmt.ph/deezerStitcher: https://tmt.ph/stitcherTune In: https://tmt.ph/tunein#TheManilaTimes Hosted on Acast. See acast.com/privacy for more information.

The Jab is banned at the local level after federal, state officials and voters ignore.  Yet MAGA media is still obsessed only with re-electing the Father of the VaccineNot even a committee set up to whitewash pandemic crimes can ignore THE CURSE OF THE MASKSCan "Peanut the Rescue Squirrel" rescue America from SWAT teams and militarized policing?Lala ditches rally for last minute SNL entertainment gig; Trump wants them punished by FCC"Jesus Isn't on the Ballot" they say, so then why do they insist on making Jesus the running mate of their candidate?Where do Trump & Lala stand on the issues like energy, speech, war, family, taxes, pandemic, and moreFull description with topics by timecode to follow TOPICS by TIMECODE (2:00) Not Federal Govt Officials, Not State Officials BUT LOCAL COUNTY BANS TRUMP SHOTSAs everyone obsesses "over the most important election" and focuses on DC, the bioweapon depopulation shot will be stopped AT LOCAL level if it is ever stopped (13:38) Pandemic UPDATEArtur Pawlowski conviction upheldThe "Curse of the Mask" exposed in Scottish Inquiry (intended to cover-up)Ozempic death toll(29:12) SWAT: Can Peanut the Rescue Squirrel Rescue USA from Scourge of Militarized Policing?It began with the War on Drugs.  When will We The People END this heinous practice of SWAT? (49:24:) LIVE COMMENTS (54:37) Lala abandons Michigan rally mid-flight for stardom on Saturday Night Live (SNL)Trump & MAGA media rages about "equal time", yet SNL did exactly same skit 9 years ago with Trump (so other MAGA media complains about copy cat)Maher has had it with the fake news from Drudge & others — "Don't lie to me" - but it keeps comingPolls, Wall Street market, gambling market — everyone is obsessed with fortune telling around this election(1:09:43)  LIVE COMMENTS (1:12:35) Extraordinary Populist Delusions and the Madness of ElectionsListener asks - If issues matter, and they do, then why aren't I talking about policy issues of Dr. Shiva that I disagree with (1:23:13) My Answer to "Stop Looking for Perfection, Jesus Isn't On the Ballot"What do we say to friends and family that want us to drop our principles and vote for what they think is a lessor evil?Do we focus on WHO is right or WHAT is right?(1:32:55) Where do Trump & Lala Stand on the issues?Energy$10k per child tax credit for homeschoolers (deduction or credit; strings attached?)Congress and 3,000 staffers EXEMPTED from vax"I Shut It Down" - who said that?WATCH Professional Wrestling — This is what 100% "REAL" look like(1:54:51) Issues continued"Health Ranger" denounces MAHA (Make America Healthy Again), not over its obvious lies and hypocrisy but over — Zionism?Insurrection Barbie doesn't think Trump is a dictator, Biden/Harris are — yet EVERY item on her list was something Trump BEGAN!Lala bans guns on her virtual "Freedom Town" on the Fortnite game"Lala Vegas" — she puts her face on the Vegas Sphere for HALF MILLION PER DAY!Trump poses with girls' sports team that opposed tranny.  Since he was ALL FOR men in women's BEAUTY PAGEANT, what's Trump's purpose here?Trump (who we're supposed to believe will save us from censorship) sues CBS for $10 BILLION(2:22:28) LIVE COMMENTS (2:24:09) Issues continuedTrump on war & peace — why did he claim to have "killed" Nord Stream II.Last American Vagabond — 4 Reasons to NOT Vote for Trump and LalaLew Rockwell — The Presidency is the Greatest Threat to Our Freedoms(2:50:07) WATCH "The Most Important Election of Our Life"If you would like to support the show and our family please consider subscribing monthly here: SubscribeStar https://www.subscribestar.com/the-david-knight-showOr you can send a donation throughMail: David Knight POB 994 Kodak, TN 37764Zelle: @DavidKnightShow@protonmail.comCash App at: $davidknightshowBTC to: bc1qkuec29hkuye4xse9unh7nptvu3y9qmv24vanh7Money should have intrinsic value AND transactional privacy: Go to DavidKnight.gold for great deals on physical gold/silverFor 10% off Gerald Celente's prescient Trends Journal, go to TrendsJournal.com and enter the code KNIGHTBecome a supporter of this podcast: https://www.spreaker.com/podcast/the-david-knight-show--2653468/support.

The Jab is banned at the local level after federal, state officials and voters ignore.  Yet MAGA media is still obsessed only with re-electing the Father of the VaccineNot even a committee set up to whitewash pandemic crimes can ignore THE CURSE OF THE MASKSCan "Peanut the Rescue Squirrel" rescue America from SWAT teams and militarized policing?Lala ditches rally for last minute SNL entertainment gig; Trump wants them punished by FCC"Jesus Isn't on the Ballot" they say, so then why do they insist on making Jesus the running mate of their candidate?Where do Trump & Lala stand on the issues like energy, speech, war, family, taxes, pandemic, and moreFull description with topics by timecode to follow TOPICS by TIMECODE (2:00) Not Federal Govt Officials, Not State Officials BUT LOCAL COUNTY BANS TRUMP SHOTSAs everyone obsesses "over the most important election" and focuses on DC, the bioweapon depopulation shot will be stopped AT LOCAL level if it is ever stopped (13:38) Pandemic UPDATEArtur Pawlowski conviction upheldThe "Curse of the Mask" exposed in Scottish Inquiry (intended to cover-up)Ozempic death toll(29:12) SWAT: Can Peanut the Rescue Squirrel Rescue USA from Scourge of Militarized Policing?It began with the War on Drugs.  When will We The People END this heinous practice of SWAT? (49:24:) LIVE COMMENTS (54:37) Lala abandons Michigan rally mid-flight for stardom on Saturday Night Live (SNL)Trump & MAGA media rages about "equal time", yet SNL did exactly same skit 9 years ago with Trump (so other MAGA media complains about copy cat)Maher has had it with the fake news from Drudge & others — "Don't lie to me" - but it keeps comingPolls, Wall Street market, gambling market — everyone is obsessed with fortune telling around this election(1:09:43)  LIVE COMMENTS (1:12:35) Extraordinary Populist Delusions and the Madness of ElectionsListener asks - If issues matter, and they do, then why aren't I talking about policy issues of Dr. Shiva that I disagree with (1:23:13) My Answer to "Stop Looking for Perfection, Jesus Isn't On the Ballot"What do we say to friends and family that want us to drop our principles and vote for what they think is a lessor evil?Do we focus on WHO is right or WHAT is right?(1:32:55) Where do Trump & Lala Stand on the issues?Energy$10k per child tax credit for homeschoolers (deduction or credit; strings attached?)Congress and 3,000 staffers EXEMPTED from vax"I Shut It Down" - who said that?WATCH Professional Wrestling — This is what 100% "REAL" look like(1:54:51) Issues continued"Health Ranger" denounces MAHA (Make America Healthy Again), not over its obvious lies and hypocrisy but over — Zionism?Insurrection Barbie doesn't think Trump is a dictator, Biden/Harris are — yet EVERY item on her list was something Trump BEGAN!Lala bans guns on her virtual "Freedom Town" on the Fortnite game"Lala Vegas" — she puts her face on the Vegas Sphere for HALF MILLION PER DAY!Trump poses with girls' sports team that opposed tranny.  Since he was ALL FOR men in women's BEAUTY PAGEANT, what's Trump's purpose here?Trump (who we're supposed to believe will save us from censorship) sues CBS for $10 BILLION(2:22:28) LIVE COMMENTS (2:24:09) Issues continuedTrump on war & peace — why did he claim to have "killed" Nord Stream II.Last American Vagabond — 4 Reasons to NOT Vote for Trump and LalaLew Rockwell — The Presidency is the Greatest Threat to Our Freedoms(2:50:07) WATCH "The Most Important Election of Our Life"If you would like to support the show and our family please consider subscribing monthly here: SubscribeStar https://www.subscribestar.com/the-david-knight-showOr you can send a donation throughMail: David Knight POB 994 Kodak, TN 37764Zelle: @DavidKnightShow@protonmail.comCash App at: $davidknightshowBTC to: bc1qkuec29hkuye4xse9unh7nptvu3y9qmv24vanh7Money should have intrinsic value AND transactional privacy: Go to DavidKnight.gold for great deals on physical gold/silverFor 10% off Gerald Celente's prescient Trends Journal, go to TrendsJournal.com and enter the code KNIGHTBecome a supporter of this podcast: https://www.spreaker.com/podcast/the-real-david-knight-show--5282736/support.

Hello, this is your daily dose of news from Onmanorama. Tune in to get updated about the major news stories of the day.See omnystudio.com/listener for privacy information.

NEWS: BIR: Yulo's prizes, gifts exempted from taxes | August 27, 2024Subscribe to The Manila Times Channel - https://tmt.ph/YTSubscribeVisit our website at https://www.manilatimes.netFollow us:Facebook - https://tmt.ph/facebookInstagram - https://tmt.ph/instagramTwitter - https://tmt.ph/twitterDailyMotion - https://tmt.ph/dailymotionSubscribe to our Digital Edition - https://tmt.ph/digitalCheck out our Podcasts:Spotify - https://tmt.ph/spotifyApple Podcasts - https://tmt.ph/applepodcastsAmazon Music - https://tmt.ph/amazonmusicDeezer: https://tmt.ph/deezerStitcher: https://tmt.ph/stitcherTune In: https://tmt.ph/tuneinSoundcloud: https://tmt.ph/soundcloud#TheManilaTimes Hosted on Acast. See acast.com/privacy for more information.

More than 8000 health workers were allowed to keep working during the pandemic, despite not being fully vaccinated against Covid-19. The data shows health providers - including district health boards, GP clinics and home-help agencies - made 516 applications for exemptions to avoid Significant Service Disruptions of which 102 were approved. Ruth Hill reports.

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Essential services will now be exempted from loadshedding. This after a Pretoria High Court ordered Minister of Electricity Kgosientsho Ramokgopa and Eskom to prevent loadshedding at certain public institutions such as schools, healthcare facilities and police stations among others. Earlier this year, Action SA and various political parties took government to court to ensure public institutions were exempt from power cuts. President Cyril Ramaphosa says government is working on easing the burden of rolling black outs on essential services. To discuss this further Elvis Presslin spoke to ActionSA National Chairperson, Michael Beaumont

OPINION: Rules-based international order: US and Israel exempted? | November 10, 2023Subscribe to The Manila Times Channel - https://tmt.ph/YTSubscribe Visit our website at https://www.manilatimes.net Follow us:Facebook - https://tmt.ph/facebookInstagram - https://tmt.ph/instagramTwitter - https://tmt.ph/twitterDailyMotion - https://tmt.ph/dailymotion Subscribe to our Digital Edition - https://tmt.ph/digital Check out our Podcasts:Spotify - https://tmt.ph/spotifyApple Podcasts - https://tmt.ph/applepodcastsAmazon Music - https://tmt.ph/amazonmusicDeezer: https://tmt.ph/deezerStitcher: https://tmt.ph/stitcherTune In: https://tmt.ph/tunein #TheManilaTimes Hosted on Acast. See acast.com/privacy for more information.

Arise, shine, for your light has come, and the glory of the Lord rises upon you. See, darkness covers the earth     and thick darkness is over the peoples, but the Lord rises upon you     and his glory appears over you. Nations will come to your light, and kings to the brightness of your dawn. Isaiah 60:1-3

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BUSINESS: Small farmers exempted from receipt requirement | October 10, 2023Subscribe to The Manila Times Channel - https://tmt.ph/YTSubscribe Visit our website at https://www.manilatimes.net Follow us:Facebook - https://tmt.ph/facebookInstagram - https://tmt.ph/instagramTwitter - https://tmt.ph/twitterDailyMotion - https://tmt.ph/dailymotion Subscribe to our Digital Edition - https://tmt.ph/digital Check out our Podcasts:Spotify - https://tmt.ph/spotifyApple Podcasts - https://tmt.ph/applepodcastsAmazon Music - https://tmt.ph/amazonmusicDeezer: https://tmt.ph/deezerStitcher: https://tmt.ph/stitcherTune In: https://tmt.ph/tunein #TheManilaTimes Hosted on Acast. See acast.com/privacy for more information.

New animal welfare legislation comes into effect across Spain with increased fines for abuse and new obligations for pet owners, but it hasn't been without controversy. An exemption for hunting dogs divided public opinion and the coalition government, while bullfighting continues to enjoy protected legal status as "cultural heritage." Carlos Sánchez from pro-hunting organization Artemisan Foundation and Brooke Spurling from animal rights group AnimaNaturalis share their thoughts on the new law. This week's Catalan phrase is 'buscar tres peus al gat'. Literally, 'to look for three feet on the cat', it means to make something unnecessarily complicated. Presented by Lorcan Doherty with Cillian Shields.

In what will be no surprise to anyone, Kodiak Industries has gotten exempted from roadside inspections and weigh stations in a pilot program.  So, it can bypass and you can't.  All they have to do is certify that the truck is inspected and for the next 24 hours they are exempt.  Isn't that nice?  Why … Continue reading Autonomous trucks will get exempted from weigh stations and roadside inspections | #150 →

Stories of historically atypical interest rate hikes, and multiple bank failures, concerned many advisors in the early days of 2023. Join us for the second (and final) part of our discussion with Casey Dylan, CIMA®, Consultant, and the host of Unfiltered Finance, Tom Romano, Head of Strategic Relationships, as we discuss some of the more prominent news events, and their effects, during Q1 of this year. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions.   Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. Transcript: 0 00:00:01.900 --> 00:00:07.800 Let's let's 1 00:00:07.600 --> 00:00:10.600 shift a little bit to some of the headlines that we saw because there was 2 00:00:10.600 --> 00:00:15.100 there's quite a bit. It felt like it was a very long quarter. Yeah, and you 3 00:00:14.200 --> 00:00:17.700 know as we did see some positive results, but can we 4 00:00:17.600 --> 00:00:21.300 talk a little bit about just in general some of the headlines that we saw and 5 00:00:20.600 --> 00:00:25.000 then specifically I want to take a dive into inflation 6 00:00:23.600 --> 00:00:26.700 and then the banks because that was 7 00:00:26.700 --> 00:00:30.200 a really big headline. We got a lot of a lot of calls regarding that look 8 00:00:29.800 --> 00:00:31.200 there there were 9 00:00:33.300 --> 00:00:35.900 Striking headlines around things like 10 00:00:36.800 --> 00:00:40.800 shocks to sort of economic surprises on 11 00:00:42.000 --> 00:00:45.300 job numbers to what was going on with the FED 12 00:00:45.100 --> 00:00:48.400 to Banks not just near the United States but 13 00:00:48.100 --> 00:00:51.600 internationally and yet what you see is kind 14 00:00:51.400 --> 00:00:55.000 of, you know markets do what they do in in any given day. They respond 15 00:00:54.600 --> 00:00:57.900 to that but they are quick to incorporate the news 16 00:00:57.600 --> 00:01:01.300 and get back to pricing on other kinds of things. And 17 00:01:00.600 --> 00:01:05.200 so I would say as a micro dosage of 18 00:01:04.600 --> 00:01:08.400 what the ride is for investors. It's 19 00:01:07.800 --> 00:01:11.000 this it's if you can sort of 20 00:01:11.000 --> 00:01:14.400 take in stride that there are going to be lots of headlines and 21 00:01:14.100 --> 00:01:17.500 that there may be short-term Market reactions headlines over the 22 00:01:17.400 --> 00:01:21.000 longer term that kind of gets filtered out on 23 00:01:20.400 --> 00:01:23.700 the upside and downside right and what you get back 24 00:01:23.400 --> 00:01:26.600 to is. Hey one of my paying for right I'm paying for some kind 25 00:01:26.500 --> 00:01:30.100 of future earnings or I'm lending with some expectation that 26 00:01:29.800 --> 00:01:33.800 I'm going to get paid and income stream based on that and that tends 27 00:01:33.000 --> 00:01:36.700 to drown out the short term noise and now 28 00:01:36.400 --> 00:01:40.200 you're back to factors of how much did I pay did I 29 00:01:40.100 --> 00:01:41.700 get my earnings did I not is 30 00:01:42.000 --> 00:01:45.600 We're upside to that right and markets are kind of a weighing machine 31 00:01:45.500 --> 00:01:48.900 in that sense. Right? They're weighing those earnings. They're weighing those 32 00:01:48.900 --> 00:01:52.200 cash flows in the future. Right? So I would say 33 00:01:52.000 --> 00:01:55.900 lots of lots of news lots of scurrying 34 00:01:55.000 --> 00:01:56.300 around the news. 35 00:01:57.100 --> 00:02:01.000 You know at the end of the day we're sort of where we started one 36 00:02:00.100 --> 00:02:03.200 of the headlines and one of the things that we've been getting a lot 37 00:02:03.200 --> 00:02:06.300 of questions about I'm talking about is is inflation. I know we've spent some time 38 00:02:06.200 --> 00:02:09.600 already today talking about that. We did 39 00:02:09.400 --> 00:02:13.500 see US inflation ease a little bit but there 40 00:02:13.100 --> 00:02:16.300 might be some pressures coming up. So if you don't mind commenting on that, that 41 00:02:16.100 --> 00:02:19.200 would be great. Yeah, you bet. I think it's helpful to kind of 42 00:02:19.200 --> 00:02:21.200 take a step back and look at 43 00:02:22.200 --> 00:02:25.700 With the onset of the pandemic right everything kind 44 00:02:25.400 --> 00:02:28.800 of shut down and then when we went to reopen things back up 45 00:02:28.600 --> 00:02:32.000 factories didn't necessarily open up, especially in 46 00:02:31.900 --> 00:02:36.600 places like China right for some time. Right and the the 47 00:02:35.300 --> 00:02:39.700 supply chain was suddenly 48 00:02:38.300 --> 00:02:41.500 constrained and so we 49 00:02:41.300 --> 00:02:44.300 had a hard time getting Goods, right but there was a lot 50 00:02:44.300 --> 00:02:48.400 of demand because we were at home, you know person stuff and so 51 00:02:48.200 --> 00:02:51.700 as you have demand shoot up but supplies constrained 52 00:02:51.200 --> 00:02:54.500 price shoots up, right? That's just sort of Economics 101 53 00:02:54.200 --> 00:02:57.400 and we saw that and at the time, you know, the Fed was quick 54 00:02:57.200 --> 00:03:00.500 to say, hey, look we think this is transitory think eventually things 55 00:03:00.200 --> 00:03:03.700 settle down we get manufacturing back online. We work 56 00:03:03.400 --> 00:03:06.700 out the bugaboos associated with the supply chain 57 00:03:06.500 --> 00:03:09.600 and those the price pressure doesn't inflationary pressure should come back 58 00:03:09.500 --> 00:03:13.100 down over time and in large respect 59 00:03:12.800 --> 00:03:16.500 this seems to have proven that out right? 60 00:03:15.800 --> 00:03:19.100 I think what really got the fed's 61 00:03:18.800 --> 00:03:21.800 attention and started them down the path. 62 00:03:22.200 --> 00:03:26.100 Of really dramatically raising rates was 63 00:03:25.400 --> 00:03:28.700 the fact that well while goods were 64 00:03:28.500 --> 00:03:31.800 sort of starting to come back down. It was 65 00:03:31.600 --> 00:03:34.900 inflation associated with services that was going up. And 66 00:03:34.600 --> 00:03:37.800 in fact, what we've seen is good coming down 67 00:03:37.600 --> 00:03:40.700 the the overall inflation of 68 00:03:40.600 --> 00:03:44.500 the CPI number or that PC number coming down from its 69 00:03:44.100 --> 00:03:48.100 highs last summer, but while that's been happening underneath 70 00:03:48.900 --> 00:03:52.300 Inflation associated with Services has continued to 71 00:03:52.100 --> 00:03:52.600 go up. 72 00:03:53.200 --> 00:03:56.500 And so even if we're at a point now where the latest inflationary readings 73 00:03:56.200 --> 00:03:58.100 are half of what they were. 74 00:03:58.900 --> 00:04:00.400 Just a year ago this time. 75 00:04:01.600 --> 00:04:05.500 Services inflation is up and continuing to go the wrong direction. Right? And 76 00:04:05.200 --> 00:04:08.400 so the the FED has said hey, look 77 00:04:08.200 --> 00:04:11.400 first of all, we don't look at kind of the overall CPI number. We don't 78 00:04:11.300 --> 00:04:15.500 that's not how we measure it. We're looking at these underlying statuents and 79 00:04:14.900 --> 00:04:18.600 they prefer the the pce as 80 00:04:18.200 --> 00:04:21.300 opposed to CPI, but they're all just kind of ways of measuring, you know 81 00:04:21.300 --> 00:04:24.900 inflation in the economy. And so 82 00:04:24.400 --> 00:04:27.400 one of the ways that we've looked at 83 00:04:27.400 --> 00:04:30.600 this for a very long time is core CPI, right? We're stripping out the 84 00:04:30.400 --> 00:04:34.100 volatility of energy and food because those tend to move around so much and then 85 00:04:33.900 --> 00:04:37.300 you know, we've been introduced to this concept that not 86 00:04:37.000 --> 00:04:40.500 only is it core CPI, but it's core Goods CPI and 87 00:04:40.200 --> 00:04:44.100 course Services CPI. And so the FED now is very focused 88 00:04:43.600 --> 00:04:48.000 on core Services looking at Services minus 89 00:04:47.000 --> 00:04:50.400 services for energy and food and what 90 00:04:50.100 --> 00:04:54.000 we see are again our sort of troubling Trends 91 00:04:53.100 --> 00:04:56.500 around services and housing 92 00:04:56.100 --> 00:04:59.400 in terms of the impact that that 93 00:04:59.200 --> 00:05:01.400 has now pushing. 94 00:05:01.600 --> 00:05:04.700 Up or holding up those inflation numbers and if they 95 00:05:04.600 --> 00:05:08.100 continue on the wrong direction, that's what the fed's concern about and the 96 00:05:07.600 --> 00:05:11.500 the whammy that potentially comes 97 00:05:10.600 --> 00:05:13.900 from if Services costs go 98 00:05:13.700 --> 00:05:16.800 up at some point that starts to impact Goods costs as 99 00:05:16.700 --> 00:05:20.600 well. Right? And so if you look at this where the the white 100 00:05:19.800 --> 00:05:23.200 bars are coming down, right the the concern 101 00:05:22.800 --> 00:05:26.400 is that Services cost the cost of producing goods 102 00:05:25.800 --> 00:05:29.200 and delivering them right is going to impact the the cost 103 00:05:29.000 --> 00:05:32.500 that gets passed through and goods start to come back up and there's sort 104 00:05:32.100 --> 00:05:35.500 of a double double impact of inflation if 105 00:05:35.400 --> 00:05:38.700 you will and that's what I think the FED is incredibly concerned about 106 00:05:38.500 --> 00:05:41.600 and and why they say look we're gonna ratchet rates up 107 00:05:41.600 --> 00:05:45.700 and we're gonna keep them up there long enough until we're convinced that we've we've 108 00:05:44.800 --> 00:05:48.000 stamped this out and brought it back down to a level that's 109 00:05:47.800 --> 00:05:51.000 livable because the last thing you want to do is take your foot off the pedal. 110 00:05:51.800 --> 00:05:55.300 And then suddenly have a Resurgence of these 111 00:05:55.000 --> 00:05:58.300 inflation Air Forces which that we've saw 112 00:05:58.000 --> 00:06:01.400 in the 70s, right if you think about what we've we've 113 00:06:01.200 --> 00:06:04.800 seen this show before the early 70s the FED raising 114 00:06:04.500 --> 00:06:08.400 rates taking their their foot off the brake, I guess and then 115 00:06:08.000 --> 00:06:11.900 Resurgence of inflation in the late 70s stagflationary 116 00:06:11.200 --> 00:06:14.500 environment and it took the volcker FED in the 80s 117 00:06:14.200 --> 00:06:17.800 taken rates to places. We'd never seen until recently right to 118 00:06:17.400 --> 00:06:20.700 to stamp that out. And so I think the FED 119 00:06:20.500 --> 00:06:24.000 is taking a lesson from history and said we don't want to repeat those mistakes. 120 00:06:23.600 --> 00:06:27.000 We're gonna stay on this until we're sure right absolutely and 121 00:06:26.600 --> 00:06:30.200 speaking of the fed and it says been a very fast pace 122 00:06:29.600 --> 00:06:32.800 in terms of Ray hikes. Yeah 123 00:06:32.600 --> 00:06:36.200 historically exactly exactly so 124 00:06:35.800 --> 00:06:40.400 they they have meant business and I 125 00:06:39.500 --> 00:06:44.100 think Market participants repeatedly made 126 00:06:43.200 --> 00:06:47.000 the mistake of not taking 127 00:06:46.700 --> 00:06:48.200 the FED at its word. 128 00:06:48.700 --> 00:06:51.900 Right and and equities markets have 129 00:06:51.700 --> 00:06:54.900 definitely gotten well ahead of the FED particularly at 130 00:06:54.700 --> 00:06:58.600 the end of last year and maybe potentially the beginning of this year bond markets 131 00:06:58.200 --> 00:07:01.500 now are pricing that the FED 132 00:07:01.200 --> 00:07:05.000 will pull back and yet the FED is saying no. No, we're we're 133 00:07:04.600 --> 00:07:08.600 gonna raise rates and we're gonna keep them there longer and that's 134 00:07:07.600 --> 00:07:10.900 you know, we have no expectation that we would 135 00:07:10.800 --> 00:07:14.300 pull back from that anytime this year. Right? So the market 136 00:07:13.800 --> 00:07:17.000 participants are our forward looking forward pricing, but 137 00:07:16.900 --> 00:07:20.500 they seem to not be taking the FED at its word. I think that's pulled 138 00:07:20.100 --> 00:07:23.800 back a little bit in February and March we started to 139 00:07:23.500 --> 00:07:25.400 see Market participants kind of get their arms around. 140 00:07:26.300 --> 00:07:29.400 Actually be coming and we see you know 141 00:07:29.400 --> 00:07:33.400 investors like hedge funds really sort of looking at volatility 142 00:07:32.400 --> 00:07:36.000 Bets with the expectation that hey this 143 00:07:35.600 --> 00:07:39.300 may get a little more turbulent before it gets better. Right? So 144 00:07:39.000 --> 00:07:44.200 there's a lot of sort of now Market positioning 145 00:07:43.200 --> 00:07:46.500 for the fed me 146 00:07:46.300 --> 00:07:49.800 actually do this and we may see an economic pullback, 147 00:07:49.300 --> 00:07:52.800 but that may not necessarily mean the FED response to 148 00:07:52.800 --> 00:07:56.500 it. Right? I think again as we look forward the 149 00:07:55.900 --> 00:08:00.100 the way that I would think about this as an investor as a the 150 00:07:59.200 --> 00:08:03.000 stock market is not the economy, right? The 151 00:08:02.400 --> 00:08:06.200 markets are definitely driven by 152 00:08:05.700 --> 00:08:09.400 interest rates and fed movement 153 00:08:09.000 --> 00:08:10.200 and yet 154 00:08:12.500 --> 00:08:16.400 Much like headlines the markets take that 155 00:08:16.200 --> 00:08:20.200 news and stride it gets built into prices and there 156 00:08:19.800 --> 00:08:23.000 may be short-term volatility associated with this but if you look out over 157 00:08:22.800 --> 00:08:26.300 time, you know, what what do we see going back to 158 00:08:26.000 --> 00:08:29.200 you know, as long as we have records 1926 and Beyond 159 00:08:29.000 --> 00:08:32.600 right Imperial heads when interest rates 160 00:08:32.300 --> 00:08:36.300 go up interest rates go down inflationary environments disinflationary environments 161 00:08:35.900 --> 00:08:40.100 recessionary environments across all of those things markets 162 00:08:38.900 --> 00:08:42.400 tend to produce a return 163 00:08:42.100 --> 00:08:45.700 of you know, seven to ten percent average annual 164 00:08:45.400 --> 00:08:49.000 you don't get that every year but you get on average over time and it's 165 00:08:48.700 --> 00:08:52.200 paying you for those cash flows so much like, 166 00:08:51.900 --> 00:08:55.100 you know, the all the comments that we've had prior to 167 00:08:54.900 --> 00:08:55.200 this. 168 00:08:56.500 --> 00:08:59.900 As investors, it's important to sort of take in its Stride 169 00:08:59.800 --> 00:09:02.900 Right put some blinders on there may be volatility associated with 170 00:09:02.800 --> 00:09:06.400 this ride. You will get wet on this ride. Right but we 171 00:09:05.800 --> 00:09:08.900 promise you'll come out in the other side, right and when you do, 172 00:09:08.800 --> 00:09:11.900 you know, the markets will get back to doing what they 173 00:09:11.800 --> 00:09:15.000 do, which is you know, paying you for putting Capital to work 174 00:09:15.000 --> 00:09:18.400 in there. So so that I would say again we watch these 175 00:09:18.100 --> 00:09:21.300 things. We we sort of especially working 176 00:09:21.100 --> 00:09:24.200 in the industry. It's a incumbent upon 177 00:09:24.100 --> 00:09:27.200 us to have some product prognostication about where this could 178 00:09:27.100 --> 00:09:30.800 be headed at the end of the day what we think matters very little it's 179 00:09:30.100 --> 00:09:33.300 what actually happens and we build portfolios to 180 00:09:33.100 --> 00:09:36.600 be as robust as we can because Anything Could Happen. Yeah, that's that's fantastic. 181 00:09:36.100 --> 00:09:39.300 And that's a really good way of putting it. We don't know what's 182 00:09:39.100 --> 00:09:40.000 happening, but we're 183 00:09:41.000 --> 00:09:45.000 We're invested in a way to endure what's to come? Right? Exactly. So 184 00:09:44.100 --> 00:09:47.500 one of the headlines that we we spent 185 00:09:47.300 --> 00:09:50.700 a lot of time talking to advisors and investors alike is the 186 00:09:50.600 --> 00:09:54.200 the notion of the banks and we saw from Silicon Valley 187 00:09:54.000 --> 00:09:56.100 and First Republic and a few others. 188 00:09:57.000 --> 00:10:00.200 I think it's a it's a risk reward story. But I also think 189 00:10:00.000 --> 00:10:04.400 this is the diversification story there. I'd love to hear your thoughts. Yeah. Well, yes, 190 00:10:03.700 --> 00:10:05.500 I think 191 00:10:06.600 --> 00:10:08.300 the the situation with the banks 192 00:10:09.300 --> 00:10:13.300 has a lot to do with other stuff, right? Yes, the 193 00:10:12.600 --> 00:10:15.800 the banks were quick to come out and say well this 194 00:10:15.600 --> 00:10:18.800 is a consequence of how rapidly the FED is 195 00:10:18.600 --> 00:10:22.300 raised interest rates. And this is potentially impaired the 196 00:10:22.200 --> 00:10:25.300 asset base of these Banks and there's no question right over the 197 00:10:25.200 --> 00:10:28.600 course of 2022. You saw the asset base 198 00:10:28.200 --> 00:10:31.500 drop significantly across banks in 199 00:10:31.400 --> 00:10:34.800 general because right so, you know first principles, 200 00:10:34.400 --> 00:10:37.500 what is a bank do they take money in when they 201 00:10:37.500 --> 00:10:41.100 take that money in as a deposit? It's a liability to them. Right? 202 00:10:40.500 --> 00:10:43.600 So they take that liability and they got to go match it up 203 00:10:43.500 --> 00:10:47.000 with an asset and they do that either by making loans and if 204 00:10:46.900 --> 00:10:50.800 they can't make enough loans, then they got to go buy bonds treasuries. 205 00:10:50.300 --> 00:10:53.800 For instance, right? Yes. That's the old against the 206 00:10:53.300 --> 00:10:56.600 liabilities. So if you if you've got a bank that 207 00:10:56.300 --> 00:10:59.600 has a bunch of bonds that they're holding as an asset 208 00:10:59.300 --> 00:11:03.000 and the value of those bonds dramatically drop. They've lost 209 00:11:02.600 --> 00:11:06.000 a lot of money against the liabilities that 210 00:11:05.900 --> 00:11:08.800 are still where they are, right and 211 00:11:09.200 --> 00:11:13.400 So that's that's the the challenge for 212 00:11:12.900 --> 00:11:13.900 the financial. 213 00:11:15.800 --> 00:11:19.200 sector and it no surprise the financial sector 214 00:11:18.900 --> 00:11:22.600 was sort of the worst performing sector for the first quarter in large 215 00:11:22.400 --> 00:11:23.700 part because of these Dynamics 216 00:11:24.800 --> 00:11:28.300 It was a part of what happened at svb. It was a catalyst 217 00:11:27.800 --> 00:11:31.300 for the bank run that followed but the bank 218 00:11:31.000 --> 00:11:34.500 run followed because of the unique dynamics of 219 00:11:34.400 --> 00:11:38.100 svb, correct? Right and the the failure 220 00:11:37.500 --> 00:11:40.900 of silvergate was 221 00:11:40.500 --> 00:11:44.200 function of crypto and had as 222 00:11:43.800 --> 00:11:47.500 much to do with FTX the failure of FTX, which 223 00:11:47.200 --> 00:11:50.300 was a Ponzi scheme, right? So you have 224 00:11:50.200 --> 00:11:54.300 a lot of kind of very unique situations Signature Bank, 225 00:11:54.100 --> 00:11:58.000 very crypto focused right First Republic the 226 00:11:57.100 --> 00:12:00.900 very very heavily on 227 00:12:00.200 --> 00:12:04.200 the asset side writing interest only mortgages 228 00:12:03.400 --> 00:12:06.700 right in to a degree that other 229 00:12:06.500 --> 00:12:10.500 Banks didn't have some unique characteristics of these Banks which cause 230 00:12:09.900 --> 00:12:13.600 them to be sort of the canary in the coal mine if you will right 231 00:12:12.900 --> 00:12:16.100 and Credit Suisse just 232 00:12:18.000 --> 00:12:21.100 Has struggled for years, right? And this was 233 00:12:21.000 --> 00:12:24.500 just the nail in the coffin form. The concern is are they 234 00:12:24.200 --> 00:12:27.600 the canary in the coal mine or are they just being punished because 235 00:12:27.400 --> 00:12:29.900 the malfeasance and poor management? 236 00:12:31.000 --> 00:12:34.700 And I think the answer is a bit of both, right? So the the 237 00:12:34.400 --> 00:12:38.400 fed and other institutions got 238 00:12:38.000 --> 00:12:41.900 together and said, hey, we got a backstop this thing to keep any contagion 239 00:12:41.300 --> 00:12:45.300 from spreading and assure depositors that 240 00:12:45.200 --> 00:12:48.600 they're deposits are safe, even if the value of the bond the assets 241 00:12:48.200 --> 00:12:51.600 that these banks are holding have dropped down. We the the government 242 00:12:51.200 --> 00:12:54.300 are going to step in and and backstop not just 243 00:12:54.200 --> 00:12:57.300 your 250,000 but everything right that was 244 00:12:57.300 --> 00:13:00.500 the strong message that they sent and that sort of seem to 245 00:13:00.300 --> 00:13:03.600 work, right it calm markets. Thanks for still being sort of reviewed and 246 00:13:03.500 --> 00:13:06.500 I would say look there's there could be more to this story. There could be 247 00:13:06.500 --> 00:13:09.800 other shoes to drop in time. Right? So you'll continue 248 00:13:09.500 --> 00:13:12.600 to watch it. I think as in as a person 249 00:13:12.500 --> 00:13:15.600 who has money at a bank, right am I rushing to pull my money 250 00:13:15.500 --> 00:13:18.800 out? No, I'm fairly confident that you know, 251 00:13:18.800 --> 00:13:21.500 we're we're gonna survive this right now. 252 00:13:22.400 --> 00:13:26.100 Did I say the same thing in 2008 when when I 253 00:13:25.700 --> 00:13:28.900 really thought hey, man, the whole financial system could go down. 254 00:13:28.800 --> 00:13:32.300 These Banks had collapse in Mass. I don't think we're anywhere 255 00:13:31.900 --> 00:13:35.300 near that I think banks are much healthier than than they 256 00:13:35.100 --> 00:13:39.900 were then and I think the issues that they have have to do with treasuries and 257 00:13:39.800 --> 00:13:43.200 the FED has said look, we're gonna step in and provide as much liquidity 258 00:13:42.800 --> 00:13:46.400 as necessary for the banks. So this becomes 259 00:13:45.900 --> 00:13:49.700 a potential issue down the down the pike, right? If 260 00:13:49.200 --> 00:13:52.700 in fact the FED has to step in and provide the 261 00:13:52.300 --> 00:13:55.700 Surplus liquidity to the treasury market, 262 00:13:55.500 --> 00:13:56.800 why might they have to do that? 263 00:13:57.800 --> 00:14:01.000 Well, if for some reason we default on the debt ceiling for instance, 264 00:14:00.800 --> 00:14:04.200 right that could be very problematic and the FED 265 00:14:04.000 --> 00:14:07.200 might have to take aggressive steps in a way that we've 266 00:14:07.100 --> 00:14:11.300 never seen before to step in and try and provide Surplus liquidity 267 00:14:10.700 --> 00:14:14.000 specifically to the treasury market. That would 268 00:14:13.800 --> 00:14:17.300 be a complete roll reversal of where we've been right? That's that's 269 00:14:17.000 --> 00:14:20.900 taking the quantitative tightening off the table and now we're back to quantities, right 270 00:14:20.400 --> 00:14:23.600 so so could things come down the bike that 271 00:14:23.500 --> 00:14:26.900 would cause a, you know, real dislocation to 272 00:14:26.500 --> 00:14:29.900 banking to markets sure it could happen 273 00:14:29.700 --> 00:14:32.900 again. Who knows right? Everybody's got a crystal 274 00:14:32.800 --> 00:14:33.100 ball. 275 00:14:34.100 --> 00:14:37.700 Nobody's usually right spot on about what's gonna happen, but 276 00:14:37.200 --> 00:14:40.400 it's a potential risk that you want. Hey, look this might happen, but 277 00:14:40.300 --> 00:14:41.000 we'll survive. 278 00:14:41.600 --> 00:14:45.200 Yeah, no, absolutely. And as you said before, I mean, it seems like the markets 279 00:14:44.600 --> 00:14:45.300 have. 280 00:14:46.100 --> 00:14:49.600 sort of shrugged off those headlines because we've seen some pretty decent returns 281 00:14:49.100 --> 00:14:52.000 and in q1, but I think you know in 282 00:14:53.200 --> 00:14:56.500 Let's let's go back to the text docs, right? I mean that's what's really 283 00:14:56.300 --> 00:14:57.800 leading the charge here, isn't it? 284 00:14:58.800 --> 00:14:59.000 well 285 00:15:00.000 --> 00:15:01.800 I think there are a lot of Dynamics at play. 286 00:15:02.400 --> 00:15:06.000 But underpinning all of that is risk and reward right? 287 00:15:05.500 --> 00:15:08.800 I mean that at the end of the day, it's that simple 288 00:15:08.600 --> 00:15:11.700 what are the risks and what are the rewards and how much am I 289 00:15:11.600 --> 00:15:15.400 willing to pay for those rewards? And am I underestimating those 290 00:15:15.200 --> 00:15:18.800 risks? Right? So everything is sort of a function of those things 291 00:15:18.600 --> 00:15:22.000 and so I would say look in equities. The the 292 00:15:21.600 --> 00:15:25.200 tech stocks is a risk, right? There's there's certainly reward 293 00:15:25.000 --> 00:15:28.400 there's upside there. We're seeing it in terms of markets, but I think there's risk 294 00:15:28.100 --> 00:15:31.800 right in fixed income. There's potential 295 00:15:31.200 --> 00:15:34.600 risk associated with the yield curve 296 00:15:34.400 --> 00:15:39.000 and what happens with the fed and raising rates in areas, 297 00:15:38.100 --> 00:15:41.600 like financials. There's risks 298 00:15:41.200 --> 00:15:44.800 right associated with that. I think the key 299 00:15:44.500 --> 00:15:47.800 takeaway for that for anybody looking at 300 00:15:47.600 --> 00:15:48.300 it is 301 00:15:49.200 --> 00:15:52.500 Broad diversification not just in 302 00:15:52.200 --> 00:15:55.600 one geography not just inequities not just in fixed income 303 00:15:55.300 --> 00:15:58.300 across factors as much as you 304 00:15:58.300 --> 00:16:01.800 can broadly diversify the more robust your portfolio is to 305 00:16:01.300 --> 00:16:04.200 stand up to any of those unique risks. 306 00:16:04.900 --> 00:16:06.800 And so I would I would say. 307 00:16:08.200 --> 00:16:12.100 That that would be where I would encourage investors to 308 00:16:11.700 --> 00:16:13.100 sort of keep their heads. 309 00:16:14.100 --> 00:16:17.400 I it's always challenging when you have tech stocks doing 310 00:16:17.300 --> 00:16:20.800 as well as they are because they drive 311 00:16:20.400 --> 00:16:23.700 markets you want to be there. You want to participate in it. 312 00:16:23.500 --> 00:16:27.400 There's a a benefit socially to 313 00:16:26.700 --> 00:16:30.100 holding names that people are familiar 314 00:16:29.700 --> 00:16:33.000 with and talk about right if you think about the 315 00:16:32.700 --> 00:16:36.000 fomo experience that people have 316 00:16:35.700 --> 00:16:38.900 missing if you're missing out, right? Yeah, my next 317 00:16:38.900 --> 00:16:41.900 door neighbor. He's he's got Google and apple and they're tear on 318 00:16:41.900 --> 00:16:45.800 the cover off the ball. Never mind. What happened last year right now, I gotta you 319 00:16:45.100 --> 00:16:48.500 know, keep up with the Joneses on that water cooler. Alpha 320 00:16:48.100 --> 00:16:51.600 is what I call that. Yeah water cooler Alpha and I would just 321 00:16:51.300 --> 00:16:54.900 say hey look at the end of the day. We're people right if we 322 00:16:54.600 --> 00:16:57.800 were autonomous, you know Vulcans. This would just be 323 00:16:57.700 --> 00:17:01.000 economics and math and we can figure it all out reality is 324 00:17:00.900 --> 00:17:04.700 we're people and you got to build a portfolio you can live with right as 325 00:17:04.200 --> 00:17:07.300 our as our good friend Phil Henry says, you 326 00:17:07.200 --> 00:17:10.700 got to build a portfolio you can live with and then live with it, right? I think 327 00:17:10.700 --> 00:17:13.400 that's absolutely true. And so you have to take into account. 328 00:17:14.000 --> 00:17:17.700 The the investor psychology associated with this that's 329 00:17:17.000 --> 00:17:20.200 why I think momentum is such a 330 00:17:20.000 --> 00:17:23.500 powerful factor to build into your portfolios 331 00:17:23.000 --> 00:17:26.200 because momentum picks up 332 00:17:26.000 --> 00:17:29.400 these like when tech stocks going to run you end up 333 00:17:29.400 --> 00:17:33.400 owning things like Apple and Google and because they 334 00:17:32.900 --> 00:17:37.100 are demonstrating positive momentum, right? So you you're picking 335 00:17:36.400 --> 00:17:39.800 up some of that you're participating in that upside and I 336 00:17:39.800 --> 00:17:42.900 think as a as an investor, that's that would probably be enough for 337 00:17:42.800 --> 00:17:46.400 me, right? It's a modicum of the things that I everybody else 338 00:17:46.200 --> 00:17:49.400 is holding that that's working but it's also stuff that's not working 339 00:17:49.300 --> 00:17:52.400 because eventually that circles around and that becomes the thing 340 00:17:52.300 --> 00:17:55.600 that's worth. I don't have to try and time it. I'm just holding it and I'm 341 00:17:55.400 --> 00:17:58.600 waiting keeping my powder dry in that area so that when it 342 00:17:58.400 --> 00:18:02.100 does I benefit that that's how I would think about it look again 343 00:18:01.700 --> 00:18:03.100 tech stocks are 344 00:18:04.300 --> 00:18:08.300 The amazing thing about markets is they run longer than you think they should right. They're 345 00:18:07.900 --> 00:18:12.100 fueled by stuff. Sometimes you don't understand and and 346 00:18:11.600 --> 00:18:15.100 in many cases, I think the 347 00:18:14.700 --> 00:18:18.500 tech stock Dynamic is is part 348 00:18:17.800 --> 00:18:21.300 fairy dust, right and you know, 349 00:18:21.200 --> 00:18:24.500 we watched it run for a decade and drive markets, you know 350 00:18:24.500 --> 00:18:28.800 for you know, double digit returns for years because 351 00:18:27.800 --> 00:18:31.900 that happen again, of course, it could right. I'm not 352 00:18:31.900 --> 00:18:35.700 gonna tell you again. I am cautious about the 353 00:18:35.200 --> 00:18:38.600 dynamic being set up looking very similar to 354 00:18:38.500 --> 00:18:42.200 the dynamic that we saw at you know, 2019 2020. 355 00:18:41.700 --> 00:18:45.000 Yeah. No, absolutely and you know that seems like that tech 356 00:18:44.700 --> 00:18:47.900 store keeps popping up. I started my career in the late 90s and that was the 357 00:18:47.800 --> 00:18:50.600 whole story and then I saw a lot of portfolios. 358 00:18:51.300 --> 00:18:55.100 A lot of people see their portfolios blow up but because of overexposure to 359 00:18:55.000 --> 00:18:58.500 to technology and they having a 360 00:18:58.400 --> 00:19:02.400 balanced portfolio Diversified across multiple asset classes regions geographies. 361 00:19:01.900 --> 00:19:05.000 That's that's the best course of action at the 362 00:19:04.900 --> 00:19:10.100 end of the day. So yeah, I think I go back to the the E-Trade 363 00:19:09.300 --> 00:19:12.600 baby, right if you remember the E-Trade baby so easy 364 00:19:12.500 --> 00:19:15.800 baby. Yeah that was born right on the text actually and then 365 00:19:15.600 --> 00:19:18.700 they they put the baby away for a while baby's back right now. I was 366 00:19:18.600 --> 00:19:21.800 a little bit older now, he's out of the wedding, you know hanging out 367 00:19:21.700 --> 00:19:25.200 with this guys and gals but to 368 00:19:24.800 --> 00:19:28.200 me that a Hallmark of a caution, right because 369 00:19:27.900 --> 00:19:32.000 the reality is it's it's easy but 370 00:19:31.600 --> 00:19:34.900 hard right it's not you know, it's not 371 00:19:34.700 --> 00:19:38.500 difficult to say. Hey look broadly based diversification sit still it's 372 00:19:37.700 --> 00:19:41.000 incredibly difficult to do. Yeah, right and that's where 373 00:19:40.900 --> 00:19:45.100 the real benefit of working with financial professionals comes in because everybody 374 00:19:44.300 --> 00:19:47.900 thinks they can do it everybody. They're gonna be Spock 375 00:19:47.300 --> 00:19:50.600 and devoid of emotion, but then the moment of truth comes 376 00:19:51.200 --> 00:19:54.200 The market drops 40% and you're looking at like am I gonna 377 00:19:54.200 --> 00:19:57.400 be able to retire? Right and the fear grips hold and it's 378 00:19:57.200 --> 00:20:00.900 2 am and you're thinking what do I do? Right. That's 379 00:20:00.300 --> 00:20:03.400 when you need to have that dispassionate third party 380 00:20:03.300 --> 00:20:07.700 to pick up the phone and say I want to sell everything. They whoa. Let's 381 00:20:07.100 --> 00:20:11.000 revisit right like is anything changed? Oh the 382 00:20:10.400 --> 00:20:13.700 market drop 40% right has anything in your life changed right? 383 00:20:13.400 --> 00:20:16.800 Maybe that's not the best course of action. Let's take a beat having that 384 00:20:16.600 --> 00:20:20.000 dispassionate a third party to keep you from blowing yourself up 385 00:20:19.700 --> 00:20:23.000 at that exact moment is invaluable. Yeah 386 00:20:22.700 --> 00:20:26.400 and making sure you have the right mix between stocks bonds 387 00:20:26.000 --> 00:20:29.900 and maybe even Alternatives depending on the investor and if someone 388 00:20:29.500 --> 00:20:33.000 can't sleep at night, it's not necessarily that they should take action, 389 00:20:32.600 --> 00:20:35.800 but they might be in the wrong asset allocation for 390 00:20:35.600 --> 00:20:36.200 their 391 00:20:37.300 --> 00:20:41.000 The risk, you know their ability to accept right? Yeah, 392 00:20:40.600 --> 00:20:45.800 it could be that often. What I've 393 00:20:45.500 --> 00:20:48.800 experienced is when it's that it's because the client wanted 394 00:20:48.500 --> 00:20:52.000 more Tech right in their portfolios or more of what's 395 00:20:51.700 --> 00:20:55.100 working, right? And then when that's no longer working, they 396 00:20:54.700 --> 00:20:57.700 can't sleep at night, but cautionary Tale the other 397 00:20:57.700 --> 00:21:01.900 piece of that is we're surrounded by the news 24/7 398 00:21:01.000 --> 00:21:04.600 right? It's just and it's always the whatever 399 00:21:04.100 --> 00:21:07.700 bleeds leads right? And so it's this constant 400 00:21:07.100 --> 00:21:12.200 drum beat of kind of negative stuff. And I think that investors 401 00:21:10.400 --> 00:21:13.700 need a voice. 402 00:21:14.600 --> 00:21:18.000 That that they trust to say. Hey, yeah. No I 403 00:21:17.800 --> 00:21:21.600 saw that too. Yes, that bank went out of business. Here's 404 00:21:20.800 --> 00:21:24.600 why we shouldn't Panic here, right? Yep. We 405 00:21:24.500 --> 00:21:28.300 see all that. Here's why we're gonna stay the course. Here's why we're not gonna Panic. Here's 406 00:21:27.800 --> 00:21:31.200 what let's you know, our long-term goals are and we're in good 407 00:21:31.100 --> 00:21:35.000 shape to hit those. I think that sort of calming reassurance 408 00:21:34.500 --> 00:21:37.700 helps people get back to sleeping at night. Yeah. No, 409 00:21:37.500 --> 00:21:40.800 I agree Casey as always. It's a pleasure talking to you. 410 00:21:40.700 --> 00:21:43.800 Thanks for joining us great having you here and I want to thank all of 411 00:21:43.700 --> 00:21:47.400 our listeners and these feel free to access other podcasts 412 00:21:46.800 --> 00:21:49.800 that we have done and they can be 413 00:21:49.800 --> 00:21:53.300 accessed anywhere you get your podcast. So thanks everyone and we 414 00:21:53.000 --> 00:21:56.800 will see you next time symmetry Partners LLC. 415 00:21:56.100 --> 00:21:59.600 It's an investment advisor firm register with 416 00:21:59.400 --> 00:22:03.300 the Security and Exchange Commission The Firm only transacts 417 00:22:02.400 --> 00:22:06.200 business in states where it is properly registered or 418 00:22:05.900 --> 00:22:09.800 excluded or Exempted from registration requirements 419 00:22:09.000 --> 00:22:12.900 registration of an investment advisor does 420 00:22:12.600 --> 00:22:14.000 not imply any specific. 421 00:22:14.600 --> 00:22:18.100 Of skill or training and does not constitute an endorsement 422 00:22:17.700 --> 00:22:21.000 of the firm by the commission. No one should assume 423 00:22:20.800 --> 00:22:24.800 that future performance of any specific investment investment strategy 424 00:22:24.200 --> 00:22:28.100 product or non-investment related content 425 00:22:27.600 --> 00:22:30.800 made reference to directly or indirectly in this 426 00:22:30.600 --> 00:22:32.600 material will be profitable. 427 00:22:33.500 --> 00:22:37.400 As with any investment strategy there is the possibility of profitability 428 00:22:36.600 --> 00:22:39.800 as well as loss due to 429 00:22:39.700 --> 00:22:43.800 various factors including changing market conditions and/or 430 00:22:42.900 --> 00:22:44.800 applicable laws. 431 00:22:45.500 --> 00:22:49.000 Content may not be reflective of current opinions or 432 00:22:48.700 --> 00:22:52.200 positions. Please note the material is 433 00:22:51.700 --> 00:22:55.300 provided for educational and background use only moreover. You 434 00:22:55.000 --> 00:22:58.900 should not assume that any discussion or information contained 435 00:22:58.200 --> 00:23:01.400 in this material Services the receipt of 436 00:23:01.200 --> 00:23:05.200 or as a substitute for personalized investment 437 00:23:04.600 --> 00:23:05.800 advice.

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As financial professionals, we're often asked one simple question: “do you know what I should buy right now?” In truth, we don't believe it's possible to successfully predict market behaviors most of the time. But, we do believe that a qualified financial advisor can help you devise a plan for long-term success. In this episode of Unfiltered Finance, our own Tom Romano, Head of Strategic Relationships and Product Development, is joined by Symmetry's Michael Storer, Senior Regional Director, and a financial advisor from our sister firm, Apella Wealth, Peter Leppones, CFP®, to answer a more important question: “what should you consider when choosing a financial advisor?” If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions.   Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.   Transcript: 00:00:01.900 --> 00:00:07.400 Hello and 1 00:00:07.400 --> 00:00:10.700  welcome to unfiltered Finance. I'm your host Tom romano. 2 00:00:10.700 --> 00:00:13.300  And thank you for joining us this episode today. We 3 00:00:13.300 --> 00:00:17.000  are talking about choosing the right financial advisor and 4 00:00:16.200 --> 00:00:19.400  I have the perfect guests for this topic 5 00:00:19.400 --> 00:00:22.300  joining us here today first and foremost Mike 6 00:00:22.300 --> 00:00:25.600  store who is a senior Regional director 7 00:00:25.600 --> 00:00:28.100  at symmetry Partners. I asked Mike to be 8 00:00:28.100 --> 00:00:31.700  on the podcast because he works with thousands of financial advisors across 9 00:00:31.700 --> 00:00:34.200  the country. He knows which ones 10 00:00:34.200 --> 00:00:37.200  are doing the appropriate job and due diligence and 11 00:00:37.200 --> 00:00:41.200  planning for their clients and the others who might be dare. I 12 00:00:41.200 --> 00:00:44.500  say fake it Mike faking it and of 13 00:00:44.500 --> 00:00:47.800  course a long time friend of mine Mr. Peter loponis 14 00:00:47.800 --> 00:00:50.900  who's a certified financial planner and financial advisor 15 00:00:50.900 --> 00:00:53.100  with Apollo wealth and happens to be 16 00:00:53.100 --> 00:00:56.200  my personal financial planner. So gentlemen, thank you both for joining 17 00:00:56.200 --> 00:00:59.600  us here today. You're welcome, Tom. Thanks Tom. Great to be here. I thought 18 00:00:59.600 --> 00:01:01.600  this was appropriate topic for us to discuss. 19 00:01:01.900 --> 00:01:04.500 you know coming out of the pandemic I travel a 20 00:01:04.500 --> 00:01:07.400  lot for business and I've been on many planes 21 00:01:07.400 --> 00:01:10.400  over the last few months and you know, whether it's an 22 00:01:10.400 --> 00:01:11.100  airport or 23 00:01:12.400 --> 00:01:16.200 Are sitting next to someone on a plane and just bring 24 00:01:15.200 --> 00:01:19.000  up some small talk and people understand 25 00:01:18.300 --> 00:01:21.300  that I'm working in the financial services a business. 26 00:01:21.300 --> 00:01:25.000  And the first question. I always get is got any 27 00:01:24.200 --> 00:01:27.300  tips. What should I be buying? What 28 00:01:27.300 --> 00:01:31.000  should I be selling? Right? It's a very common question and for 29 00:01:30.300 --> 00:01:33.100  years, my response has always been and I'm 30 00:01:33.100 --> 00:01:36.400  a firm believer of this is the best advice I can give anyone in 31 00:01:36.400 --> 00:01:39.300  that moment is to work with 32 00:01:39.300 --> 00:01:42.300  someone you trust financial planner financial 33 00:01:42.300 --> 00:01:46.300  advisor that's working in a fiduciary capacity. I 34 00:01:45.300 --> 00:01:48.300  have a number of reasons why I say that but 35 00:01:48.300 --> 00:01:51.700  Mike I'd love to hear it from your perspective. Why should 36 00:01:51.700 --> 00:01:54.300  investors people planning for 37 00:01:54.300 --> 00:01:57.300  retirement or for any other Financial need be working 38 00:01:57.300 --> 00:02:00.100  with a financial professional? That's a great question. 39 00:02:00.100 --> 00:02:03.100  I think you hit on it at the in your opening 40 00:02:03.100 --> 00:02:04.100  remarks Tom is that 41 00:02:04.900 --> 00:02:05.200 You know. 42 00:02:06.300 --> 00:02:09.300 Having traveled the country for many 43 00:02:09.300 --> 00:02:14.300  years working with a number of different types of advisors and meeting 44 00:02:13.300 --> 00:02:16.900  with clients at the same time, you know clients have 45 00:02:16.900 --> 00:02:19.200  different desperate needs in terms of when it 46 00:02:19.200 --> 00:02:22.100  comes to financial Financial advice so they can 47 00:02:22.100 --> 00:02:25.100  certainly learn about it on on a website if they 48 00:02:25.100 --> 00:02:28.500  want to but I found that especially the 49 00:02:28.500 --> 00:02:31.900  best advisors are working working with 50 00:02:31.900 --> 00:02:34.400  clients and from that 51 00:02:34.400 --> 00:02:36.300  perspective. I know who these advisors are. 52 00:02:37.300 --> 00:02:40.500 And I know they're doing a great job for their clients. And for me, 53 00:02:40.500 --> 00:02:43.400  the one thing that comes to mind besides everything 54 00:02:43.400 --> 00:02:46.100  else at a financial advisor does because I think about it in 55 00:02:46.100 --> 00:02:49.600  my own world is comfort and peace of mind, right? There's lots 56 00:02:49.600 --> 00:02:51.400  of different moving Parts when it comes to planning. 57 00:02:52.200 --> 00:02:55.500 And and what you're going to do with your money for the long term and even myself 58 00:02:55.500 --> 00:02:58.200  being in this business, I worry about am I making 59 00:02:58.200 --> 00:03:01.900  the right decisions? So I think a lot of it comes down 60 00:03:01.900 --> 00:03:05.400  to peace of mind and comfort. I think that that's high 61 00:03:04.400 --> 00:03:07.300  level. There's a lot of you can drill down from there 62 00:03:07.300 --> 00:03:10.900  but I think for most clients if you think about it, it's getting that 63 00:03:10.900 --> 00:03:13.400  pressure off of you and bringing a 64 00:03:13.400 --> 00:03:16.500  professional and to make sure that you're meeting your life goals, whatever those might 65 00:03:16.500 --> 00:03:19.400  be sure. No, absolutely. I think what I'm hearing you say, I 66 00:03:19.400 --> 00:03:23.100  hear things like planning and long-term and Peter 67 00:03:22.100 --> 00:03:25.700  I'll shift over to you. So 68 00:03:25.700 --> 00:03:28.400  what I'm hearing Mike say and I loved for you to plan 69 00:03:28.400 --> 00:03:31.400  on this when someone asks me got any tips, 70 00:03:31.400 --> 00:03:32.700  why is that the wrong question? 71 00:03:34.600 --> 00:03:35.200 well, I think 72 00:03:36.700 --> 00:03:39.500 the answer they're looking for everyone wants something 73 00:03:39.500 --> 00:03:42.600  that's exciting and and sexy that 74 00:03:42.600 --> 00:03:43.200  they can tell. 75 00:03:44.400 --> 00:03:47.500 Their friends. I think you've used the term water cooler alpha or 76 00:03:47.500 --> 00:03:50.900  Golf Course Alpha everyone thinks somehow because we're 77 00:03:50.900 --> 00:03:53.600  sitting here on the inside. We're insiders. We've 78 00:03:53.600 --> 00:03:56.600  got more information than than they do 79 00:03:56.600 --> 00:03:59.300  as as retail investors, but 80 00:03:59.300 --> 00:04:02.600  that's just not the case and and it's not about 81 00:04:02.600 --> 00:04:05.200  hitting that home run with the stock because 82 00:04:05.200 --> 00:04:08.500  if you're gonna be picking individual stocks, there's gonna 83 00:04:08.500 --> 00:04:11.300  be some home runs in there, but there's got to be some singles and 84 00:04:11.300 --> 00:04:14.500  doubles there's gonna be some losers too. It just 85 00:04:14.500 --> 00:04:18.000  it's gonna happen statistically, but when 86 00:04:17.100 --> 00:04:20.600  we talk about a plan and what 87 00:04:20.600 --> 00:04:23.700  it can do for you long term the sense of confidence 88 00:04:23.700 --> 00:04:26.300  that it's going to give you. That's what you really need. Hey, it's 89 00:04:26.300 --> 00:04:29.300  great to be able to say Jesus I bought in at this stock when when it 90 00:04:29.300 --> 00:04:32.500  was at 10 and it went to a hundred and in two years. It's a 91 00:04:32.500 --> 00:04:33.700  great story, but 92 00:04:35.200 --> 00:04:38.500 Is better to have a sense of confidence and comfort with your 93 00:04:38.500 --> 00:04:41.200  plan and with your financial outcomes, and that's why 94 00:04:41.200 --> 00:04:44.500  sitting down and taking the time to go through a plan with a 95 00:04:44.500 --> 00:04:47.100  cfp with someone who's a fiduciary is really in your 96 00:04:47.100 --> 00:04:50.400  best interest versus getting that that hot stock tip. 97 00:04:50.400 --> 00:04:53.100  Yeah, I would agree. The one thing that 98 00:04:53.100 --> 00:04:56.200  I always comes to mind when someone says got any tips the first 99 00:04:56.200 --> 00:04:59.700  thing I'm thinking well if I had some I wouldn't tell you I'd keep 100 00:04:59.700 --> 00:05:02.300  it all for myself, right? There's wildly more Capital 101 00:05:02.300 --> 00:05:06.600  to be to be earned when you keep those secrets to yourself right quick 102 00:05:05.600 --> 00:05:08.100  short story. Tom and 103 00:05:08.100 --> 00:05:11.400  Peter. My son is out in gainfully employed 104 00:05:11.400 --> 00:05:14.600  in the Working World now and he has a little bit of money and he 105 00:05:14.600 --> 00:05:17.700  asked me about a year ago a year and a half ago to Dad what 106 00:05:17.700 --> 00:05:20.700  stocks should I pick? And so I immediately opened 107 00:05:20.700 --> 00:05:24.300  up the Barron's journal and 108 00:05:24.300 --> 00:05:27.200  I just looked at the stocks to pick now I said, hey, you 109 00:05:27.200 --> 00:05:30.100  know, if you want to buy some technology, here's a bunch of Technology names. I said, 110 00:05:30.100 --> 00:05:33.400  you know, the market has been involved, but if you want to buy stocks, here's a 111 00:05:33.400 --> 00:05:34.800  couple of names that you can just 112 00:05:35.300 --> 00:05:39.500 Your portfolio. So of course he did that on my advice and 113 00:05:38.500 --> 00:05:41.300  then about a year later. He 114 00:05:41.300 --> 00:05:44.400  was blaming me because I'm the one that picked the stocks from in the 115 00:05:44.400 --> 00:05:45.000  stocks were Downs. 116 00:05:45.800 --> 00:05:48.600 I just thought that was kind of interesting because it I did 117 00:05:48.600 --> 00:05:51.400  exactly the opposite of what I should have said to him right in terms 118 00:05:51.400 --> 00:05:54.400  of how we should be approaching these but you know, this was play 119 00:05:54.400 --> 00:05:57.500  money for him. So I let him learn a little bit about what it 120 00:05:57.500 --> 00:06:00.300  really means to invest in those types of questions of the wrong questions, 121 00:06:00.300 --> 00:06:03.000  right as you just mentioned Peter and so I thought it was 122 00:06:03.200 --> 00:06:06.400  a really good it was a it was a learning moment for him to understand that 123 00:06:06.400 --> 00:06:09.700  you don't just pick stocks and they go up. Oh, absolutely and like 124 00:06:09.700 --> 00:06:13.000  I I actually I do that with with clients. I'll 125 00:06:12.200 --> 00:06:13.600  say to them. 126 00:06:14.600 --> 00:06:17.100 If you want to open up a small account and I 127 00:06:17.100 --> 00:06:20.000  use the term your Casino money. Hey, you got to go to 128 00:06:20.100 --> 00:06:23.300  the casino and sit there and maybe go out to dinner have a drink play the 129 00:06:23.300 --> 00:06:26.500  slot sit at a table if you lose a hundred or 200 130 00:06:26.500 --> 00:06:27.100  or $300. 131 00:06:28.500 --> 00:06:30.300 It was a night of entertainment you had a good time. 132 00:06:31.300 --> 00:06:34.600 I see take your Casino money and put it into an account and 133 00:06:34.600 --> 00:06:37.300  buy a couple of stocks and just it's it's 134 00:06:37.300 --> 00:06:40.400  good education for you. You might learn some valuable 135 00:06:40.400 --> 00:06:43.900  lessons, but you're gonna pay really close attention. Even 136 00:06:43.900 --> 00:06:46.200  if it's only five or 10 shares of a 137 00:06:46.200 --> 00:06:49.200  company and you'll you'll learn a lot for it. So I think there is certainly a 138 00:06:49.200 --> 00:06:52.900  value in that but with large sums of Money Retirement accounts 139 00:06:52.900 --> 00:06:55.400  brokerage accounts. Absolutely not none of 140 00:06:55.400 --> 00:06:58.700  this stock picking. It's got to be a low cost. Well Diversified portfolio. 141 00:06:58.700 --> 00:07:01.100  So I'm hearing you say it's okay to sit in a 142 00:07:01.100 --> 00:07:01.300  little bit. 143 00:07:02.300 --> 00:07:05.800 Any bit tiny bit? Absolutely. No, I didn't. You 144 00:07:05.800 --> 00:07:08.300  know, I like to play the market myself, but I'm only doing 145 00:07:08.300 --> 00:07:11.500  that with my my entertainment dollars not my 146 00:07:11.500 --> 00:07:14.500  long-term assets that that my family 147 00:07:14.500 --> 00:07:18.100  and I are going to need at some point in time. Right? So Peter 148 00:07:17.100 --> 00:07:20.400  you've been talking a lot about planning right and and 149 00:07:20.400 --> 00:07:23.200  I've been in this business for a long time as with you 150 00:07:23.200 --> 00:07:27.500  you and I've worked together for many many years. I've noticed 151 00:07:26.500 --> 00:07:29.800  the value proposition of financial advisor 152 00:07:29.800 --> 00:07:32.300  has changed right at one point. It was that 153 00:07:32.300 --> 00:07:36.200  stock picker many many years ago. So this 154 00:07:35.200 --> 00:07:38.400  day and age what what do 155 00:07:38.400 --> 00:07:41.500  you see as the value proposition to a financial advisor? 156 00:07:42.200 --> 00:07:46.000 In my opinion, it has to be the plan because that's 157 00:07:45.300 --> 00:07:48.500  where we've had success as a firm. I've 158 00:07:48.500 --> 00:07:51.300  had success as an advisor clients have had success 159 00:07:51.300 --> 00:07:54.700  following that advice and and really 160 00:07:54.700 --> 00:07:57.100  it's about the planning and that's the most 161 00:07:57.100 --> 00:08:00.600  valuable advice. I give to my clients. Hey, we're with 162 00:08:00.600 --> 00:08:04.200  a low cost. Well Diversified portfolio. We're going 163 00:08:03.200 --> 00:08:06.300  to get a market return the market for us 164 00:08:06.300 --> 00:08:09.300  taking risk. We will get a market return and my 165 00:08:09.300 --> 00:08:12.700  return will be no different than my clients because we invest in very similar 166 00:08:12.700 --> 00:08:16.300  similarly constructed portfolios, but 167 00:08:15.300 --> 00:08:16.700  really 168 00:08:17.900 --> 00:08:20.800 Whether we get an 8% return 9% 10% 169 00:08:20.800 --> 00:08:23.300  return long-term. It's really 170 00:08:23.300 --> 00:08:24.100  the plan. 171 00:08:25.200 --> 00:08:28.500 That is is going to drive all that and just because 172 00:08:28.500 --> 00:08:31.400  their portfolio is up a certain year that that's 173 00:08:31.400 --> 00:08:32.800  great and they like to see that. 174 00:08:33.900 --> 00:08:36.100 But again, the plan is going to say well geez, I 175 00:08:36.100 --> 00:08:39.700  know now I can retire at age 62. I'm 176 00:08:39.700 --> 00:08:43.600  going to take Social Security at 67 when 177 00:08:42.600 --> 00:08:44.700  I retire at 62. 178 00:08:45.500 --> 00:08:48.500 I'm going to be able to pay for my own health insurance until 179 00:08:48.500 --> 00:08:51.700  I hit MediCare at age 65. I mean, those are questions 180 00:08:51.700 --> 00:08:54.300  that aren't even related to a rate 181 00:08:54.300 --> 00:08:57.300  of return or a stock pick or any of that. They're planning 182 00:08:57.300 --> 00:09:00.300  questions, but they're extremely important to people the very 183 00:09:00.300 --> 00:09:03.300  comprehensive list of questions versus should you be in a 184 00:09:03.300 --> 00:09:06.100  60% stock 40% bomb for far beyond that 185 00:09:06.100 --> 00:09:09.400  correct? Correct, but it's it's about the the layers and 186 00:09:09.400 --> 00:09:13.200  the investment management risk reward asset 187 00:09:12.200 --> 00:09:16.000  allocation being allocated appropriately. 188 00:09:17.400 --> 00:09:20.100 According to your risk tolerance that's all part of it. But you 189 00:09:20.100 --> 00:09:23.200  do when I sit down with clients we talk about the 190 00:09:23.200 --> 00:09:26.200  performance we talk about what the markets have been doing and we really start 191 00:09:26.200 --> 00:09:29.700  to get into those those items Healthcare Medicare long 192 00:09:29.700 --> 00:09:33.900  term care gifting money to people grandchildren 193 00:09:32.900 --> 00:09:35.700  setting up a 529 194 00:09:35.700 --> 00:09:38.200  accounts. All those types of things. These 195 00:09:38.200 --> 00:09:41.200  are the goals and the things that are important to clients and they come 196 00:09:41.200 --> 00:09:45.000  through the planning process. Yeah, that's extremely valuable right life 197 00:09:44.100 --> 00:09:47.800  comes at you fast, and there's a number of instances in 198 00:09:47.800 --> 00:09:50.400  my personal life where I've leaned on you for things that 199 00:09:50.400 --> 00:09:53.100  are fun far beyond investable assets. 200 00:09:54.100 --> 00:09:57.200 So that's that's good. So what so far listeners out there. 201 00:09:57.200 --> 00:10:01.100  I mean you're looking for a financial professional that 202 00:10:00.100 --> 00:10:02.300  is planning focused. 203 00:10:03.400 --> 00:10:06.700 But also from a very comprehensive standpoint Beyond 204 00:10:06.700 --> 00:10:09.700  stocks bonds mutual funds Exchange Trade 205 00:10:09.700 --> 00:10:10.300  funds Etc. 206 00:10:11.300 --> 00:10:14.500 So let's one of the things that's a 207 00:10:14.500 --> 00:10:15.100  change gears a little bit. 208 00:10:16.500 --> 00:10:19.500 You know, there's over 300,000 financial advisors in 209 00:10:19.500 --> 00:10:22.400  the United States, right? The term 210 00:10:22.400 --> 00:10:25.700  fiduciary comes up quite a bit and I'm 211 00:10:25.700 --> 00:10:28.800  always surprised maybe I'm not as surprised 212 00:10:28.800 --> 00:10:31.600  as I once was that investors are don't 213 00:10:31.600 --> 00:10:34.900  necessarily understand that sometimes advisors are 214 00:10:34.900 --> 00:10:38.200  acting any fiduciary capacity and sometimes 215 00:10:37.200 --> 00:10:40.300  they are not before we 216 00:10:40.300 --> 00:10:41.500  jump into that. 217 00:10:42.400 --> 00:10:45.500 Explain to us Peter. What is a fiduciary? Well, it's 218 00:10:45.500 --> 00:10:48.700  it's the highest standard of care in in 219 00:10:48.700 --> 00:10:51.700  our industry. And I've sort of I've been on both 220 00:10:51.700 --> 00:10:54.300  sides of it. So I have to act in my 221 00:10:54.300 --> 00:10:57.200  clients best interest not only being affiliated with with a 222 00:10:57.200 --> 00:11:00.600  palette but also being a cfp and really 223 00:11:00.600 --> 00:11:03.300  what that comes down to at the end of the day 224 00:11:03.300 --> 00:11:05.300  is the type of 225 00:11:06.600 --> 00:11:09.200 Investment product. I'm going to refer to 226 00:11:09.200 --> 00:11:12.900  everything as a product that we put our clients into and 227 00:11:13.700 --> 00:11:18.800 I've got a really focus on the cost the level 228 00:11:17.800 --> 00:11:20.600  of care below a fiduciary. It's 229 00:11:20.600 --> 00:11:23.400  referred to as the suitability standard. Does that mean if I'm 230 00:11:23.400 --> 00:11:26.800  not a fiduciary? I'm doing something unethical absolutely not 231 00:11:26.800 --> 00:11:30.300  the last thing I want to do because I again I was there I've worked 232 00:11:30.300 --> 00:11:33.200  with clients where I was just doing by this suitability standard. I 233 00:11:33.200 --> 00:11:36.200  was not a fiduciary at the end of the 234 00:11:36.200 --> 00:11:40.200  day. I'm putting my clients into something that is putting more money back 235 00:11:39.200 --> 00:11:43.100  into their pocket meaning the fees 236 00:11:42.100 --> 00:11:46.200  and the costs associated with those products are 237 00:11:45.200 --> 00:11:49.200  much lower. We have 238 00:11:49.200 --> 00:11:52.500  no Front End Sales charges. We have no backend sales charges. 239 00:11:52.500 --> 00:11:55.100  So I said to clients that are that are coming on board. 240 00:11:56.100 --> 00:11:59.400 I will bend over backwards to make sure that you are happy but at some 241 00:11:59.400 --> 00:12:03.300  point if you don't realize the value 242 00:12:02.300 --> 00:12:05.500  of our services or you chose to go elsewhere, you 243 00:12:05.500 --> 00:12:08.800  can do that. You're going to be able to take what you have here and 244 00:12:08.800 --> 00:12:11.400  move that elsewhere. You're not going to be tied up for three or 245 00:12:11.400 --> 00:12:14.300  five or ten years. No surrender charges or big 246 00:12:14.300 --> 00:12:17.000  fees to go acting in their best interest and that helps 247 00:12:17.200 --> 00:12:20.100  to protect them. And I think it's extremely important that people 248 00:12:20.100 --> 00:12:20.700  need to ask 249 00:12:22.800 --> 00:12:25.700 Are you a fiduciary is your firm of fiduciary? And how 250 00:12:25.700 --> 00:12:27.600  do you work? So when? 251 00:12:28.900 --> 00:12:32.200 Investors are looking for a financial 252 00:12:31.200 --> 00:12:34.400  professional to work with right what I'm 253 00:12:34.400 --> 00:12:37.800  hearing someone the first things I should look for and they should ask about it potentially 254 00:12:37.800 --> 00:12:40.600  even get it in writing. Are you acting any fiduciary 255 00:12:40.600 --> 00:12:45.100  capacity? Are you acting in my best interest? Correct? They 256 00:12:44.100 --> 00:12:48.800  absolutely should and and interview multiple 257 00:12:47.800 --> 00:12:52.600  people Tom has 258 00:12:51.600 --> 00:12:54.200  been not only a great client. But I've worked 259 00:12:54.200 --> 00:12:57.500  with many of Tom's family members. Why because they come to Tom. Jeez 260 00:12:57.500 --> 00:13:00.700  Tom. I've got some questions. Who should I work with? Well talk 261 00:13:00.700 --> 00:13:03.400  to Peter. So if you have a friend or family member who you 262 00:13:03.400 --> 00:13:06.500  know works with an advisor ask for that that person's name. 263 00:13:06.500 --> 00:13:09.400  And if they will if you have a friend or family member they'll 264 00:13:09.400 --> 00:13:12.300  refer them over if they enjoy working with them. So I think that's a 265 00:13:12.300 --> 00:13:15.800  good place to start but interview them there's many checklists 266 00:13:15.800 --> 00:13:18.800  online and I think one of the things you want to ask about are 267 00:13:18.800 --> 00:13:21.800  you a fiduciary understand what that means and it's 268 00:13:21.800 --> 00:13:24.900  it's something important because there's 269 00:13:24.900 --> 00:13:27.300  plenty of us out. There aren't as many as probably there should 270 00:13:27.300 --> 00:13:28.900  be but there's plenty fiduc. 271 00:13:28.900 --> 00:13:30.000 He's out there for you to work with. 272 00:13:30.800 --> 00:13:33.000 Absolutely. You made a really good point. I was doing a little research. 273 00:13:34.300 --> 00:13:35.600 Knowing that we were going to have this. 274 00:13:36.500 --> 00:13:39.400 Talk today the three of us and you know, 275 00:13:39.400 --> 00:13:42.700  the number one way investors find their financial advisors through 276 00:13:42.700 --> 00:13:45.500  through referrals. Right number two is through 277 00:13:45.500 --> 00:13:49.500  you know online searches and things like that. So 278 00:13:48.500 --> 00:13:51.200  I think that's that's really important 279 00:13:51.200 --> 00:13:54.200  when you're looking for financial audience advisor talk to your family 280 00:13:54.200 --> 00:13:57.800  your friends people who have or may have similar Financial 281 00:13:57.800 --> 00:14:00.200  situations as you do but I 282 00:14:00.200 --> 00:14:03.600  think you know, the important thing. Is that the very good question. Are 283 00:14:03.600 --> 00:14:06.900  you acting and a fiduciary capacity at all times, right? 284 00:14:11.300 --> 00:14:14.100 We talked about the planning process one of the things I want to 285 00:14:14.100 --> 00:14:17.700  touch upon and Mike will turn to you is that sometimes giving 286 00:14:17.700 --> 00:14:20.700  good advice means saying no not giving 287 00:14:20.700 --> 00:14:23.900  the client what they're looking for. Right and 288 00:14:23.900 --> 00:14:27.400  I've seen advisors who act 289 00:14:26.400 --> 00:14:29.700  as more of a facilitator 290 00:14:29.700 --> 00:14:32.400  very high service level but whatever the client 291 00:14:32.400 --> 00:14:35.400  wants they they get what are some of the Perils of 292 00:14:35.400 --> 00:14:35.500  that? 293 00:14:36.700 --> 00:14:40.200 The Perils are that you become all 294 00:14:39.200 --> 00:14:42.100  things to all people and as I think 295 00:14:42.100 --> 00:14:46.400  Thomas you have famously said if everything's 296 00:14:45.400 --> 00:14:48.600  important nothing's important and 297 00:14:48.600 --> 00:14:51.300  I think from the perspective of advice that we work with 298 00:14:51.300 --> 00:14:54.100  it's it's you know 299 00:14:54.100 --> 00:14:57.800  when you when you think about that kind of cafeteria style 300 00:14:57.800 --> 00:14:59.000  service. 301 00:14:59.900 --> 00:15:01.400 It becomes very difficult to. 302 00:15:02.900 --> 00:15:05.500 Address clients needs concerns or 303 00:15:05.500 --> 00:15:08.000  fears because you know 304 00:15:08.700 --> 00:15:11.400  in terms of of investment investment advice, 305 00:15:11.400 --> 00:15:14.400  if you're if you've got clients that are in individual stocks 306 00:15:14.400 --> 00:15:17.800  and you have clients in Diversified portfolios, or they're in a more passive 307 00:15:17.800 --> 00:15:21.200  investment or they're in a tactical investment. You're constantly 308 00:15:20.200 --> 00:15:23.400  pivoting to try to answer questions to 309 00:15:23.400 --> 00:15:26.300  all these different constituencies within your practice what we 310 00:15:26.300 --> 00:15:29.700  find in our in our work is that you know advisors that 311 00:15:29.700 --> 00:15:32.400  have a philosophy advisors have a way that 312 00:15:32.400 --> 00:15:36.000  they approach the capital markets and how they construct portfolios I 313 00:15:35.500 --> 00:15:39.000  tend to do the best because their clients are like-minded and 314 00:15:38.400 --> 00:15:41.300  it keeps them in their seats even when markets are 315 00:15:41.300 --> 00:15:42.900  difficult. So having a 316 00:15:43.800 --> 00:15:46.200 Kind of a carte blanche or 317 00:15:46.200 --> 00:15:49.900  I like to say cafeteria style investment or at 318 00:15:49.900 --> 00:15:52.300  least offering makes it more difficult for you to keep your 319 00:15:52.300 --> 00:15:56.200  clients in line. I think over time and I think what I 320 00:15:56.200 --> 00:15:59.600  like like best about being at symmetries, we do have that investment philosophy. That's 321 00:15:59.600 --> 00:16:02.700  straightforward. It doesn't deviate and most 322 00:16:02.700 --> 00:16:05.000  of the advice that work with us tend to have 323 00:16:05.100 --> 00:16:08.300  that same philosophy. The interesting thing about that too is you notice 324 00:16:08.300 --> 00:16:11.300  when markets are fairly volatile which where this is really important 325 00:16:11.300 --> 00:16:14.700  is that you know investors that 326 00:16:14.700 --> 00:16:18.000  kind of adhere to similar investment 327 00:16:17.400 --> 00:16:20.700  strategy like symmetries is that they tend 328 00:16:20.700 --> 00:16:23.800  to have less gap between What markets are doing and what 329 00:16:23.800 --> 00:16:26.300  their Investments are doing because they tend to stay in their seats. They're not 330 00:16:26.300 --> 00:16:29.800  moving around behaviorally moving in and out of the market or moving in and 331 00:16:29.800 --> 00:16:31.600  out of Investments. And I think that's sometimes can be the 332 00:16:32.400 --> 00:16:35.700 the offshoot of having a strategy where 333 00:16:35.700 --> 00:16:37.200  you're just trying to be everything to everybody. 334 00:16:38.800 --> 00:16:41.200 I'm going to unpack use it a lot of really yeah, I get 335 00:16:41.200 --> 00:16:44.100  there. Sorry, but no. No, I just want to make sure our listeners get it to get 336 00:16:44.100 --> 00:16:47.700  some really really good insight there Mike. So first 337 00:16:47.700 --> 00:16:50.800  and foremost you talk about an investment philosophy 338 00:16:50.800 --> 00:16:53.700  and what I'm hearing you say is that we're talking 339 00:16:53.700 --> 00:16:56.100  about advice, right and if someone wants to 340 00:16:56.100 --> 00:16:58.200  give advice you have to have a stake in the ground. 341 00:16:59.400 --> 00:17:02.300 You have to have that place where your your view on 342 00:17:02.300 --> 00:17:04.200  how Capital markets work? 343 00:17:04.900 --> 00:17:07.400 And if you don't have that view you might fall into that 344 00:17:07.400 --> 00:17:08.700  facilitator capacity. 345 00:17:10.300 --> 00:17:13.300 The other thing that she said I'm glad you 346 00:17:13.300 --> 00:17:16.300  said it as you talked a lot about behavior and what I'm hearing you 347 00:17:16.300 --> 00:17:19.500  say is the study we've used many times the dial 348 00:17:19.500 --> 00:17:22.500  bar study for our listeners. Could you talk a little bit about what that dial bar 349 00:17:22.500 --> 00:17:26.000  research shows us sure is that it shows that the the investor 350 00:17:25.200 --> 00:17:26.600  over, you know? 351 00:17:27.600 --> 00:17:30.100 Many time periods. I mean they updated every year but it goes 352 00:17:30.100 --> 00:17:33.600  back a number of years and it looks at what investors 353 00:17:33.600 --> 00:17:36.200  do in terms of investing in 354 00:17:36.200 --> 00:17:39.600  the let's say the S&P 500 as an index versus what the 355 00:17:39.600 --> 00:17:43.300  index does and we find year in and year out that investors 356 00:17:42.300 --> 00:17:45.200  tend to underperform the 357 00:17:45.200 --> 00:17:48.500  index and the question always is Peter and you know this why 358 00:17:48.500 --> 00:17:51.500  and it's because they're holding period is 359 00:17:51.500 --> 00:17:54.600  tends to be I think it's less it used to be in the old days three 360 00:17:54.600 --> 00:17:57.300  three plus years now. It's three minus here. It's less 361 00:17:57.300 --> 00:18:00.200  than three years of holding period of time, which means they're 362 00:18:00.900 --> 00:18:03.500 Behaviorally trying to in some 363 00:18:03.500 --> 00:18:06.400  ways time the market and so what we 364 00:18:06.400 --> 00:18:09.000  try to do at least in as I talk 365 00:18:09.100 --> 00:18:12.300  to advisors is to try to educate them and educate clients as 366 00:18:12.300 --> 00:18:15.300  well that you know, we want to close that Gap we 367 00:18:15.300 --> 00:18:18.200  call that the the performance Gap right? 368 00:18:18.200 --> 00:18:22.000  There's a gap between what investments do and what the investor 369 00:18:21.300 --> 00:18:24.300  does right? We know this plenty of Dad out 370 00:18:24.300 --> 00:18:27.100  there to show that so how do we do that? Peter had talked about a little 371 00:18:27.100 --> 00:18:30.300  bit earlier is we look at things like, okay, what's important? How do 372 00:18:30.300 --> 00:18:33.600  we close that Gap? It comes from financial planning. It comes 373 00:18:33.600 --> 00:18:37.000  from portfolio selection, not necessarily portfolio 374 00:18:36.300 --> 00:18:39.400  management, but portfolio selection in terms 375 00:18:39.400 --> 00:18:42.600  of picking the right model of the right strategy for for clients 376 00:18:42.600 --> 00:18:45.000  education and communication with clients. I 377 00:18:45.100 --> 00:18:48.900  think those are great ways that we see that behavioral Gap 378 00:18:48.900 --> 00:18:51.700  closing through time and that and 379 00:18:51.700 --> 00:18:54.900  ends up being a an experience 380 00:18:54.900 --> 00:18:57.000  that clients will be with their advisors for a long time 381 00:18:57.300 --> 00:19:00.400  because you focus on the things that matter not the investment 382 00:19:00.400 --> 00:19:00.700  itself. 383 00:19:01.800 --> 00:19:02.700 a great computer 384 00:19:03.500 --> 00:19:06.800 You're the the man in the seat here. So talk 385 00:19:06.800 --> 00:19:09.200  to us a little about that. Right? I mean that dial bar study is 386 00:19:09.200 --> 00:19:11.600  pretty telling every year investors are underperforming. 387 00:19:12.300 --> 00:19:15.900 You focus on planning. How does planning help with the 388 00:19:15.900 --> 00:19:18.200  long-term thinking that is required for 389 00:19:18.200 --> 00:19:20.500  successful experience. It comes into 390 00:19:21.800 --> 00:19:24.500 Not only the planning but educating clients and 391 00:19:24.500 --> 00:19:27.600  communication and the example I'll use and we were 392 00:19:27.600 --> 00:19:27.800  all. 393 00:19:28.500 --> 00:19:32.200 working from back home during the the pandemic and 394 00:19:33.900 --> 00:19:36.200 the markets dropped about a 395 00:19:36.200 --> 00:19:36.800  third 396 00:19:37.800 --> 00:19:40.700 so about 33% in about a month's time thinking 397 00:19:40.700 --> 00:19:43.600  the numbers are 33% over 34 days 1/3. 398 00:19:44.300 --> 00:19:47.300 And we're sitting here stuck at home. We think the world is going 399 00:19:47.300 --> 00:19:50.400  to end and my message to my clients because 400 00:19:50.400 --> 00:19:54.000  it's the message of our firm message that I truly believe. 401 00:19:55.300 --> 00:19:55.700 And it wasn't easy. 402 00:19:56.400 --> 00:19:59.600 No, we're not doing anything this too shall 403 00:19:59.600 --> 00:19:59.700  pass. 404 00:20:00.600 --> 00:20:03.600 You know, this is the.com bubble. This 405 00:20:03.600 --> 00:20:06.600  is 911. This is the 406 00:20:06.600 --> 00:20:09.900  great financial crisis of 2008. 407 00:20:10.600 --> 00:20:13.400 It doesn't necessarily matter what the event 408 00:20:13.400 --> 00:20:16.500  is because everyone know Peter is a pandemic. It's different like you're 409 00:20:16.500 --> 00:20:20.100  right, but you're not it's the uncertainty and what 410 00:20:19.100 --> 00:20:22.700  lo and behold what happens after the 411 00:20:22.700 --> 00:20:23.900  market drops a third. 412 00:20:24.800 --> 00:20:27.800 In March February and to March it 413 00:20:27.800 --> 00:20:30.700  shoots back up. It comes roaring back why we 414 00:20:30.700 --> 00:20:34.100  had no vaccine. We still were unemployment had 415 00:20:33.100 --> 00:20:36.200  still not hit its peak because of 416 00:20:36.200 --> 00:20:39.900  all the you know, retail and entertainment losses 417 00:20:39.900 --> 00:20:42.200  that that took place in in this country and around the 418 00:20:42.200 --> 00:20:45.000  world. We still have this crazy election in front 419 00:20:45.100 --> 00:20:48.800  of us. There was still uncertainty but why why did it happen and I 420 00:20:48.800 --> 00:20:51.500  don't think there's necessarily an answer but the lesson learned 421 00:20:51.500 --> 00:20:54.800  is we stay in our seats regardless of what's going on because 422 00:20:54.800 --> 00:20:57.500  the markets have they've always come back and I 423 00:20:57.500 --> 00:20:59.500  believe any time we hit something. 424 00:21:00.700 --> 00:21:03.300 They'll come back again. We just don't know when so that 425 00:21:03.300 --> 00:21:06.100  experience because I I think 426 00:21:06.100 --> 00:21:09.200  you use the term staking in the stand or stake in the ground. That was my 427 00:21:09.200 --> 00:21:12.200  stake in the ground. And now as we went through all of this in 428 00:21:12.200 --> 00:21:15.500  2022 with all of the uncertainty and inflation and 429 00:21:15.500 --> 00:21:18.700  gas prices and all of that impacting 430 00:21:18.700 --> 00:21:20.700  the markets interest rates being increased. 431 00:21:22.200 --> 00:21:25.200 People said yeah, I remember what you said back during the 432 00:21:25.200 --> 00:21:28.200  pandemic. So yeah, okay that that makes sense. It's the 433 00:21:28.200 --> 00:21:30.300  messaging my messages consistent. 434 00:21:31.200 --> 00:21:34.000 And when people hear that, there's a sense of confidence like, you know what he was 435 00:21:34.200 --> 00:21:36.400  right last time. He'll probably be right this time, too. 436 00:21:37.400 --> 00:21:40.200 Fantastic, and I remember that Panda right that 437 00:21:40.200 --> 00:21:43.500  first quarter of 2020 was one of the top 10 worst 438 00:21:43.500 --> 00:21:48.100  quarters in the United States history going back to 1926. The 439 00:21:47.100 --> 00:21:50.200  second quarter of 2020 was one of the top 10 440 00:21:50.200 --> 00:21:53.400  best quarters the United States ever experienced going 441 00:21:53.400 --> 00:21:56.200  back. And and the funny thing is if we had 442 00:21:56.200 --> 00:21:59.200  been if we had moved our money out of we did 443 00:21:59.200 --> 00:22:02.500  not stay calm and we moved money out 444 00:22:02.500 --> 00:22:05.300  of the market in March. What would 445 00:22:05.300 --> 00:22:08.700  we have missed? When do we get back in? It's it's 446 00:22:08.700 --> 00:22:11.200  difficult. It's difficult to sit there 447 00:22:11.200 --> 00:22:14.100  when the market is dropping and say my gosh we have to do 448 00:22:14.100 --> 00:22:17.600  something but you're also playing the same game when you get out. It's like 449 00:22:17.600 --> 00:22:20.200  well if you get out, okay well, but then the market will eventually 450 00:22:20.200 --> 00:22:21.700  come back. Well, when do you get back in? 451 00:22:22.600 --> 00:22:25.300 And and and we just see long-term what the 452 00:22:25.300 --> 00:22:26.600  results are you're better off. 453 00:22:27.400 --> 00:22:30.500 Staying going dealing with the rollercoaster ride 454 00:22:30.500 --> 00:22:33.500  staying in your seat versus making rash decisions based 455 00:22:33.500 --> 00:22:36.100  upon fear and emotion Peter Michael. Thank you so much 456 00:22:36.100 --> 00:22:39.400  for joining us here today that concludes part one of our discussion 457 00:22:39.400 --> 00:22:42.200  on choosing the right financial advisor. I look 458 00:22:42.200 --> 00:22:45.200  forward to continuing the conversation at part two, and if you want to 459 00:22:45.200 --> 00:22:48.800  look at any of our previous unfiltered Finance podcasts, they're 460 00:22:48.800 --> 00:22:51.700  available wherever you might be getting your podcast today. So, 461 00:22:51.700 --> 00:22:53.400  thank you till next time bye-bye. 462 00:22:53.900 --> 00:22:56.500 Symmetry Partners LLC is an 463 00:22:56.500 --> 00:22:59.500  investment advisor firm registered with the Securities and 464 00:22:59.500 --> 00:23:02.200  Exchange Commission The Firm only transacts business 465 00:23:02.200 --> 00:23:06.200  in states where it is properly registered or excluded 466 00:23:05.200 --> 00:23:10.000  or Exempted from registration requirements registration 467 00:23:08.100 --> 00:23:11.700  of an investment advisor does 468 00:23:11.700 --> 00:23:14.900  not imply any specific level of skill or training and 469 00:23:14.900 --> 00:23:17.400  does not constitute an endorsement of the firm 470 00:23:17.400 --> 00:23:20.500  by the commission. No one should assume that future performance 471 00:23:20.500 --> 00:23:23.600  of any specific investment investment strategy 472 00:23:23.600 --> 00:23:26.900  product or non-investment related content 473 00:23:26.900 --> 00:23:29.200  made reference to directly or indirectly in 474 00:23:29.200 --> 00:23:31.400  this material will be profitable. 475 00:23:32.400 --> 00:23:35.400 As with any investment strategy there is the possibility of 476 00:23:35.400 --> 00:23:38.600  profitability as well as loss due to 477 00:23:38.600 --> 00:23:41.600  various factors including changing market conditions. 478 00:23:41.600 --> 00:23:44.800  And/or applicable laws the content 479 00:23:44.800 --> 00:23:47.800  may not be reflective of current opinions or 480 00:23:47.800 --> 00:23:50.500  positions. Please note the material 481 00:23:50.500 --> 00:23:53.800  is provided for educational and background use only moreover. 482 00:23:53.800 --> 00:23:57.000  You should not assume that any discussion or information 483 00:23:56.700 --> 00:23:59.700  contained in this material Services the 484 00:23:59.700 --> 00:24:03.300  receipt of or as a substitute for personalized 485 00:24:02.300 --> 00:24:04.500  investment advice.

In our last episode, we discussed the importance of a portfolio's asset allocation, and, how that relates to “Reducing Your Tax Bill”. In part two of this episode, we are joined once again by Symmetry's Managing Director of Research and Investments, Philip McDonald, CFA, CAAIA & Glenn Shirley, CAIA, Head of Investor Relations for Quantinno Capital Management, to discuss the methods by which you can “re-charge that tax benefit”. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions.   Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.   00:00:01.800 --> 00:00:07.600 Hello listeners, 1 00:00:07.600 --> 00:00:10.900  welcome back to part two of our conversation on 2 00:00:10.900 --> 00:00:13.500  investing in taxes. Once again, I'm joined by Glenn 3 00:00:13.500 --> 00:00:16.500  Shirley from quantino and Phil McDonald from symmetry. 4 00:00:16.500 --> 00:00:19.100  Thanks gentlemen for joining us again, whether or not the market goes up 5 00:00:19.100 --> 00:00:22.800  or down when you have the long short overlay you have 6 00:00:22.800 --> 00:00:26.700  opportunities to to find losers losses. 7 00:00:26.700 --> 00:00:29.700  If you will to reach hard that tax benefit, 8 00:00:29.700 --> 00:00:32.400  it's some what counterintuitive right we're looking 9 00:00:32.400 --> 00:00:35.300  for Securities that have gone down in 10 00:00:35.300 --> 00:00:38.100  value, but I think the truth of the matter is is that when you 11 00:00:38.100 --> 00:00:41.600  own an ETF that's tracking an index or mutual 12 00:00:41.600 --> 00:00:44.300  fund that's tracking index. The reality is Phil 13 00:00:44.300 --> 00:00:47.600  you do own those losers. You just might not see them right? They're always 14 00:00:47.600 --> 00:00:50.200  that's right. Yeah looking at and that's 15 00:00:50.200 --> 00:00:53.300  a great Point looking at say in S&P 500 or 16 00:00:53.300 --> 00:00:57.300  Russell 1000 ETF. You you see one number, 17 00:00:56.300 --> 00:00:59.300  you know one one price 18 00:00:59.300 --> 00:01:01.500  one return but behind 19 00:01:02.300 --> 00:01:06.100 You're likely going to have dozens and dozens of positions 20 00:01:05.100 --> 00:01:08.200  that throughout the year and at year end 21 00:01:08.200 --> 00:01:11.900  are in or in a lost position. So in 22 00:01:11.900 --> 00:01:14.400  direct indexing, it just kind of breaks down that wrapper and 23 00:01:14.400 --> 00:01:17.700  you hold, you know hundreds of Securities directly. So 24 00:01:17.700 --> 00:01:20.800  you kind of see those a little bit more clearly sure and 25 00:01:20.800 --> 00:01:24.400  we've seen that in recent years right with some of these tech stocks 26 00:01:24.400 --> 00:01:27.400  the Fang stocks if you will Facebook Apple Amazon Netflix Google 27 00:01:27.700 --> 00:01:30.200  Etc. They were driving the returns of the S&P and there 28 00:01:30.200 --> 00:01:33.400  was a vast majority of those securities within the S&P that 29 00:01:33.400 --> 00:01:36.300  were in the red and by unwrapping it you can 30 00:01:36.300 --> 00:01:39.600  take advantage of those you still run into the issue of 31 00:01:39.600 --> 00:01:42.700  the portfolio seizing and what 32 00:01:42.700 --> 00:01:45.400  I mean by that is what we've been talking about having that portfolio 33 00:01:45.400 --> 00:01:48.000  get to a point where you don't have any room to make 34 00:01:48.300 --> 00:01:51.600  any trades without incurring some sort of tax consequence, but I 35 00:01:51.600 --> 00:01:54.900  think that's where the 1330 comes in right Glenn you're 36 00:01:54.900 --> 00:01:57.300  able to apply that strategy on 37 00:01:57.300 --> 00:02:00.700  top of an existing portfolio generate losses in 38 00:02:00.700 --> 00:02:02.200  any Market environment. And so 39 00:02:02.200 --> 00:02:05.100 So I think that that's a really interesting thing Glenn. Can you talk a little bit? 40 00:02:05.100 --> 00:02:08.200  I didn't mean to interrupt you, but could you talk a little bit about what is 41 00:02:08.200 --> 00:02:11.400  what happens with the risk exposure by putting that overlay on 42 00:02:11.400 --> 00:02:14.500  right investor with that 100 dollars 30 long 43 00:02:14.500 --> 00:02:17.100  30 short what what happens to the 44 00:02:17.100 --> 00:02:20.600  risk characters of that particular account? Sure. Yeah great 45 00:02:20.600 --> 00:02:23.300  question Tom. So if you look at if you just 46 00:02:23.300 --> 00:02:26.900  put on a 30% long 30% short 47 00:02:26.900 --> 00:02:29.300  portfolio. And you said what is the risk of 48 00:02:29.300 --> 00:02:32.500  that portfolio in isolation by itself? The answer 49 00:02:32.500 --> 00:02:36.000  to that is about one percent and that 50 00:02:35.100 --> 00:02:38.300  could be there be you know, standard deviation how much it's 51 00:02:38.300 --> 00:02:42.100  going to move around or it could be if you're if you're looking at that benchmarked 52 00:02:41.100 --> 00:02:44.200  to a you know, an index like 53 00:02:44.200 --> 00:02:47.400  the S&P 500 that would be one percent tracking here. So pretty 54 00:02:47.400 --> 00:02:50.500  modest, you know, a lot of active Equity strategies have tracking 55 00:02:50.500 --> 00:02:53.300  air easily of two percent or more. So we're 56 00:02:53.300 --> 00:02:56.300  not adding a lot of of risk just via that long 57 00:02:56.300 --> 00:02:59.500  short extension, but in reality as I mentioned you have 58 00:02:59.500 --> 00:03:01.600  these kind of Legacy accounts that 59 00:03:02.200 --> 00:03:05.700 Some elevated levels of risk that long short extension is 60 00:03:05.700 --> 00:03:08.200  a tool to reduce that risk. So even though 61 00:03:08.200 --> 00:03:11.400  you have a 1% risk in 62 00:03:11.400 --> 00:03:14.300  that long short extension in isolation. If you use that 63 00:03:14.300 --> 00:03:17.400  long short extension efficiently to reduce 64 00:03:17.400 --> 00:03:20.600  the total risk of the portfolio, then oftentimes we 65 00:03:20.600 --> 00:03:23.900  can also we can actually reduce kind of the total tracking 66 00:03:23.900 --> 00:03:26.400  error or risk versus The Benchmark of a 67 00:03:26.400 --> 00:03:29.200  tax less harvesting strategy often we can at least 68 00:03:29.200 --> 00:03:32.400  keep it the same. So when you look at a quantino kind 69 00:03:32.400 --> 00:03:35.900  of 130 30 tax loss harvesting account tracking errors 70 00:03:35.900 --> 00:03:38.400  typically one and a half percent on average 71 00:03:38.400 --> 00:03:41.400  and that's very very similar to what of 72 00:03:41.400 --> 00:03:44.300  what a clients are probably experiencing in their long only text less 73 00:03:44.300 --> 00:03:47.100  harvesting accounts as well. So just to reiterate what you're 74 00:03:47.100 --> 00:03:50.400  saying by applying the the 1330 extension to 75 00:03:50.400 --> 00:03:53.700  a portfolio the clients risk exposures still that 76 00:03:53.700 --> 00:03:56.300  principle investment is what I'm hearing you say, 77 00:03:56.300 --> 00:03:59.400  however, I think what I think a really really strong 78 00:03:59.400 --> 00:04:01.700  point is that it's not necessarily 79 00:04:02.200 --> 00:04:05.900 the risk by putting the overlay but it actually can be a risk mitigator Phil 80 00:04:05.900 --> 00:04:09.200  you and I have run across these many many times where investors 81 00:04:08.200 --> 00:04:11.600  come to us and we look at their existing Holdings 82 00:04:11.600 --> 00:04:14.200  and we're working on a Case right now 83 00:04:14.200 --> 00:04:17.600  where the investor who probably should 84 00:04:17.600 --> 00:04:20.500  have a balanced portfolio between Brawley Diversified 85 00:04:20.500 --> 00:04:21.600  stocks and bonds. 86 00:04:22.200 --> 00:04:25.900 Is stuck in a single stock position that they 87 00:04:25.900 --> 00:04:28.200  can't do anything with because of the 88 00:04:28.200 --> 00:04:31.200  fact that it's it's got such a low cost basis if 89 00:04:31.200 --> 00:04:34.600  they were to sell that security. They would be looking at some significant. 90 00:04:35.400 --> 00:04:38.400 Tax consequences, but only a single 91 00:04:38.400 --> 00:04:41.300  stock is a real risky Endeavor. Oh, no question, 92 00:04:41.300 --> 00:04:41.800  and I think 93 00:04:43.300 --> 00:04:46.400 This is such an incredibly powerful benefit of this 94 00:04:46.400 --> 00:04:49.600  strategy. And I think it it sometimes is you know 95 00:04:49.600 --> 00:04:52.600  mentioned second after the the tax Alpha 96 00:04:52.600 --> 00:04:55.300  and hey, you can keep more of what you earn but this is so 97 00:04:55.300 --> 00:04:57.100  incredibly powerful, you know, thinking of 98 00:04:58.200 --> 00:05:01.300 Really sad examples through time like Enron, you know things went 99 00:05:01.300 --> 00:05:04.400  very bad for people who held most of their company 100 00:05:04.400 --> 00:05:07.200  stock a lot of incentive plans. These 101 00:05:07.200 --> 00:05:10.400  days will give employees options and shares and 102 00:05:10.400 --> 00:05:13.000  all that. So this is an issue or a lot 103 00:05:13.500 --> 00:05:16.700  of investors and I think this solution really is, you know virtuous and 104 00:05:16.700 --> 00:05:19.400  really helping them in their Financial Health and just to 105 00:05:19.400 --> 00:05:22.600  maybe put a finer point on it and at the 106 00:05:22.600 --> 00:05:25.900  risk of being a little repetitive, you know, if you own a 107 00:05:25.900 --> 00:05:29.200  large amount of your, you know, large amount of your financial wealth 108 00:05:28.200 --> 00:05:31.600  is in an oil stock or a 109 00:05:31.600 --> 00:05:32.100  tech stock. 110 00:05:32.700 --> 00:05:35.800 Immediately in putting on the 13030 strategy 111 00:05:35.800 --> 00:05:38.400  the the 30 extension the 112 00:05:38.400 --> 00:05:40.000  30 more long can hold. 113 00:05:40.700 --> 00:05:42.900 Every other industry except that one you hold. 114 00:05:43.500 --> 00:05:46.900 Imagine that diversification and then the short can reduce 115 00:05:46.900 --> 00:05:50.000  that exposure to that one industry. So overnight in 116 00:05:49.500 --> 00:05:52.400  what in in the first, you know 117 00:05:52.400 --> 00:05:55.700  day of transactions you go from hey, I 118 00:05:55.700 --> 00:05:58.800  might end up like Enron or wow. My my 119 00:05:58.800 --> 00:06:01.400  financial wealth is gonna ride up and down with 120 00:06:01.400 --> 00:06:04.900  the price of crude oil or how Google does and 121 00:06:04.900 --> 00:06:07.400  immediately you're getting more 122 00:06:07.400 --> 00:06:10.000  of a diversified Market portfolio. Even if 123 00:06:10.200 --> 00:06:13.900  you're just shooting toward maybe an S&P 500 Index. It's immediately 124 00:06:13.900 --> 00:06:16.100  beneficial Glen. I don't know if you'd add 125 00:06:16.100 --> 00:06:20.400  anything to that but I really find that as you know, powerful benefit 126 00:06:19.400 --> 00:06:22.400  to the end investor. Yeah, the 127 00:06:22.400 --> 00:06:25.900  your correct fell the deals exchange solution that 128 00:06:25.900 --> 00:06:28.300  quantino offers is really a use case 129 00:06:28.300 --> 00:06:31.400  that came about from client feedback. We're fortunate to 130 00:06:31.400 --> 00:06:34.400  work with a lot of family offices. These are very wealthy families that 131 00:06:34.400 --> 00:06:37.500  have concentration in their portfolio. 132 00:06:37.500 --> 00:06:40.300  They built wealth via service to a public company or 133 00:06:40.300 --> 00:06:43.400  investing in a company that went public and eventually 134 00:06:43.400 --> 00:06:46.000 They want to turn the corner from you know, 135 00:06:46.300 --> 00:06:50.600  this this wealth that has been built by that concentration turning 136 00:06:49.600 --> 00:06:52.400  the corner toward wealth preservation and that 137 00:06:52.400 --> 00:06:55.500  means diversification. So how do we do that in a tax efficient manner? 138 00:06:55.500 --> 00:06:58.800  There's exchange funds that we you 139 00:06:58.800 --> 00:07:01.500  know that are really an option for very wealthy families, but 140 00:07:01.500 --> 00:07:05.200  really not for clients at scale. They're multi-million 141 00:07:04.200 --> 00:07:07.200  dollar minimums their private 142 00:07:07.200 --> 00:07:10.500  Fund Solutions and you know, you're vestly 143 00:07:10.500 --> 00:07:13.800  investing in a hedge fund that's gonna take seven years to diversify 144 00:07:13.800 --> 00:07:15.500  and they're very expensive. So we always knew 145 00:07:16.600 --> 00:07:19.800 that if we could use our capabilities to help clients diversify 146 00:07:19.800 --> 00:07:22.100  concentrated positions to be a pretty powerful thing and 147 00:07:22.100 --> 00:07:25.600  that 30 by 30 extensions the the way we do that so, you 148 00:07:25.600 --> 00:07:27.100  know, we put that long short extension on 149 00:07:27.700 --> 00:07:30.300 The extension generates tax benefits along the 150 00:07:30.300 --> 00:07:33.100  way we can use that extension to reduce the risk of 151 00:07:33.100 --> 00:07:36.200  that concentrated position. You're totally right there. And then 152 00:07:36.200 --> 00:07:39.300  over time as we generate those consistent tax benefits 153 00:07:39.300 --> 00:07:42.300  that gives us a mechanism to sell 154 00:07:42.300 --> 00:07:45.900  down that concentrated position, but we're always matching 155 00:07:45.900 --> 00:07:48.300  the tax benefits that we generate with the 156 00:07:48.300 --> 00:07:51.100  capital gains that we are realizing by selling down that 157 00:07:51.100 --> 00:07:51.400  position. 158 00:07:52.400 --> 00:07:55.700 And then once we sell we're rebalancing into a 159 00:07:55.700 --> 00:07:58.300  diversified index of the advisor and the client's Choice 160 00:07:58.300 --> 00:08:01.900  could be S&P 500. It could be Global stocks really whatever 161 00:08:01.900 --> 00:08:04.700  the asset allocation decision ends up 162 00:08:04.700 --> 00:08:07.400  being so yeah a typical even low basis very 163 00:08:07.400 --> 00:08:10.500  low basis position 20% cost basis. We 164 00:08:10.500 --> 00:08:13.400  can help diversify in a tax efficient manner 165 00:08:13.400 --> 00:08:15.100  in around seven years. 166 00:08:16.300 --> 00:08:19.100 That's very cool. It's a very clever strategy. I mean 167 00:08:19.100 --> 00:08:23.200  we're talking about tax benefits, but what we're really talking about is 168 00:08:22.200 --> 00:08:24.500  transitioning a 169 00:08:25.300 --> 00:08:28.900 Well, I would consider a concentrate risky portfolio very 170 00:08:28.900 --> 00:08:31.200  risky at times into something that 171 00:08:31.200 --> 00:08:34.700  is more suitable for that investor more Diversified but 172 00:08:34.700 --> 00:08:37.600  doing it in a way that they don't 173 00:08:37.600 --> 00:08:40.900  have to feel the the pain of unwinding 174 00:08:40.900 --> 00:08:44.000  those positions that might have some very significant embedded 175 00:08:43.300 --> 00:08:46.600  gains. You know it our 176 00:08:46.600 --> 00:08:47.500  industry we get 177 00:08:49.100 --> 00:08:52.000 picked on I guess for being very jargony right a lot 178 00:08:52.600 --> 00:08:55.100  of jargon and terms that a lot of folks that 179 00:08:55.100 --> 00:08:58.400  are not in this industry on a daily basis and 180 00:08:58.400 --> 00:09:02.000  we throw out the term tax Alpha quite a bit and 181 00:09:01.300 --> 00:09:04.300  I'll throw this question out to both the a Phil and Glenn. 182 00:09:04.300 --> 00:09:07.700  Can we just Define what tax Alpha is 183 00:09:07.700 --> 00:09:10.400  and then can you quantify it? Sure. Yeah. Yeah 184 00:09:10.400 --> 00:09:13.300  to us. I think of tax Alpha is 185 00:09:13.300 --> 00:09:13.900  tax savings. 186 00:09:14.900 --> 00:09:18.400 So, you know if if quantino generates 187 00:09:17.400 --> 00:09:20.900  a dollar of short-term 188 00:09:20.900 --> 00:09:22.200  capital loss. 189 00:09:22.700 --> 00:09:25.700 Then if you have a short-term gain 190 00:09:25.700 --> 00:09:28.500  a dollar of short-term gains, that saves you 191 00:09:28.500 --> 00:09:32.200  40.8 percent. So I've saved the client 40 cents 192 00:09:31.200 --> 00:09:34.900  41 cents in tax. If 193 00:09:34.900 --> 00:09:37.400  I'm using that short-term law stuff set long 194 00:09:37.400 --> 00:09:41.300  term gains that that long-term gains rate essentially 23% 195 00:09:40.300 --> 00:09:43.400  at the federal level. So I've 196 00:09:43.400 --> 00:09:46.800  saved clients, you know, 24 cents 197 00:09:46.800 --> 00:09:49.000  on that dollar of a capital loss. 198 00:09:49.900 --> 00:09:52.700 So if I can consistently generate Capital losses 199 00:09:52.700 --> 00:09:55.700  if quantino can consistently do that. We're letting 200 00:09:55.700 --> 00:09:58.500  clients offset the capital gains 201 00:09:58.500 --> 00:09:59.500  that they have in their portfolio. 202 00:10:00.100 --> 00:10:03.600 and they're just keeping more of the return from those capital gains 203 00:10:03.600 --> 00:10:06.200  year to year and those capital gains from can come from a lot of different, 204 00:10:06.200 --> 00:10:08.500  you know Avenues it could be 205 00:10:09.300 --> 00:10:12.300 Capital gains distributions from Mutual Funds. It could 206 00:10:12.300 --> 00:10:15.700  be long-term gains realized from rebalancing your portfolio 207 00:10:15.200 --> 00:10:19.000  Etc. So to me tax Alpha 208 00:10:18.700 --> 00:10:21.200  is keeping more of that return in the 209 00:10:21.200 --> 00:10:24.400  client's pocket paying less in capital gains and using those 210 00:10:24.400 --> 00:10:27.800  Capital losses as a vehicle to do that great. 211 00:10:27.800 --> 00:10:30.500  That's a that's a very eloquent definition of 212 00:10:30.500 --> 00:10:33.300  taxol. Do you care to add that? Yeah. I I like that 213 00:10:33.300 --> 00:10:36.100  definition as well. Yeah. One thing I'd say is 214 00:10:36.100 --> 00:10:40.000  that I think there's again pretty broad agreement 215 00:10:39.300 --> 00:10:42.700  that long only tax loss harvesting 216 00:10:42.700 --> 00:10:45.300  does have a benefit to the portfolio 217 00:10:45.300 --> 00:10:48.500  and it might be, you know one to two percent maybe maybe 218 00:10:48.500 --> 00:10:51.500  two percent on you know, really good implementations call 219 00:10:51.500 --> 00:10:54.400  it one percent. But again that has a 220 00:10:54.400 --> 00:10:57.600  horizon that's gonna likely track down as your portfolio 221 00:10:57.600 --> 00:11:00.300  ossifies seizes up turns into 222 00:11:00.300 --> 00:11:03.600  our favorite word. No, you know, 223 00:11:03.600 --> 00:11:06.400  nothing with unrealized gains. So, you know, 224 00:11:06.400 --> 00:11:09.100  you're talking 1% dish in 225 00:11:09.700 --> 00:11:12.600 Long only tax less harvesting type of tax Alpha that 226 00:11:12.600 --> 00:11:15.300  that is going to go away in a handful 227 00:11:15.300 --> 00:11:18.700  of years, right? Thank you for that. One of 228 00:11:18.700 --> 00:11:21.800  the the questions and this is gonna go really to 229 00:11:21.800 --> 00:11:24.200  investment vehicle more so than anything else. I've heard 230 00:11:24.200 --> 00:11:27.400  investors say like 2022 for instance. 231 00:11:28.200 --> 00:11:31.400 Horrible, no good very bad year for investors Equity fixed 232 00:11:31.400 --> 00:11:35.100  income both down investors who hold actively 233 00:11:34.100 --> 00:11:36.800  managed mutual funds. 234 00:11:37.900 --> 00:11:38.900 having negative return 235 00:11:39.900 --> 00:11:42.500 But they also got a pretty hefty tax bill 236 00:11:42.500 --> 00:11:45.600  in some scenarios right capital gains distributions in 237 00:11:45.600 --> 00:11:48.500  December. So Phil when investors 238 00:11:48.500 --> 00:11:51.200  are looking at open-ended mutual funds what are 239 00:11:51.200 --> 00:11:54.700  some of the things that they should be considering from a tax efficiency standpoint, 240 00:11:54.700 --> 00:11:57.700  you raise a good point and to some extent 241 00:11:57.700 --> 00:12:00.300  those examples of you know, being down and 242 00:12:00.300 --> 00:12:03.600  having a gains distribution. That's an unlucky 243 00:12:03.600 --> 00:12:06.600  combination of a handful of things right like it comes 244 00:12:06.600 --> 00:12:09.300  down to perform some fun what the 245 00:12:09.300 --> 00:12:12.400  Redemption level was how the fun generates cash 246 00:12:12.400 --> 00:12:15.900  to meet those redemptions and whether 247 00:12:15.900 --> 00:12:18.600  or not that's kind of gain realizing 248 00:12:18.600 --> 00:12:21.700  lost real estate realizing or neutral history of 249 00:12:21.700 --> 00:12:24.500  the mutual funds experience can maybe give you 250 00:12:24.500 --> 00:12:28.000  some insight into that as well as the strategy whether 251 00:12:27.300 --> 00:12:30.500  it's going to be, you know tax efficient in 252 00:12:30.500 --> 00:12:33.800  a neutral kind of scenario and whether 253 00:12:33.800 --> 00:12:36.500  it's you know, growing or stable 254 00:12:36.500 --> 00:12:39.500  as opposed to, you know, shrinking with a lot of redemptions. 255 00:12:40.400 --> 00:12:43.800 you mentioned tack sorry investment vehicles so very often 256 00:12:43.800 --> 00:12:44.200  we 257 00:12:45.100 --> 00:12:48.600 We compare mutual funds and ETFs and there are some important differences 258 00:12:48.600 --> 00:12:51.300  there on the income side, they're pretty 259 00:12:51.300 --> 00:12:55.200  even right funds all funds have to distribute income and 260 00:12:55.200 --> 00:12:58.900  they can choose the frequency with which they do that. Some of 261 00:12:58.900 --> 00:13:01.500  the differences really come into play with capital gains 262 00:13:01.500 --> 00:13:04.400  realization. Now mutual funds to me 263 00:13:04.400 --> 00:13:07.300  to Redemption they have to do that with the cash in the fund. They might 264 00:13:07.300 --> 00:13:10.500  have enough cash. They might need to sell to realize that 265 00:13:10.500 --> 00:13:13.000  to fund that Redemption and some of 266 00:13:13.100 --> 00:13:16.900  the things I mentioned earlier, you know, whether they have enough cash what 267 00:13:16.900 --> 00:13:19.300  their tax Lots look like how their age 268 00:13:19.300 --> 00:13:22.600  how they're Diversified how the fund's been performing, you know 269 00:13:22.600 --> 00:13:25.300  frequency and magnitude of redemptions all that will 270 00:13:25.300 --> 00:13:28.600  kind of impact whether or not you're end. They have realized 271 00:13:28.600 --> 00:13:31.800  game they need to distribute or not with ETFs. 272 00:13:31.800 --> 00:13:34.400  There's a little more complexity in how they're traded 273 00:13:34.400 --> 00:13:38.100  and some of the some of the capital gains efficiencies. 274 00:13:37.100 --> 00:13:40.400  So you and I can trade an ETF 275 00:13:40.400 --> 00:13:43.300  on an exchange and that doesn't involve the fund at all, you know, you 276 00:13:43.300 --> 00:13:44.900  sell share I buy a share from you and 277 00:13:45.100 --> 00:13:49.000 The fund's not involved funds doesn't need to find cash pretty 278 00:13:48.300 --> 00:13:51.400  simple. But there are some transactions that do 279 00:13:51.400 --> 00:13:54.700  involve the fund, you know, something called authorized participants help 280 00:13:54.800 --> 00:13:57.300  ETFs trade efficiently 281 00:13:57.300 --> 00:14:00.900  and sometimes they'll redeem directly with the fund the 282 00:14:00.200 --> 00:14:03.100  ETF the ETF has a choice 283 00:14:03.100 --> 00:14:06.600  to you know, redeem in kind or give Securities to that 284 00:14:06.600 --> 00:14:09.500  redeeming entity, right and in 285 00:14:09.500 --> 00:14:12.400  doing that there's no transaction. There's no realization 286 00:14:12.400 --> 00:14:15.100  of of gains and it gets 287 00:14:15.100 --> 00:14:18.400  even more interesting because that the fun can choose 288 00:14:18.400 --> 00:14:22.300  which shares to redeem out and they can often redeem 289 00:14:21.300 --> 00:14:25.000  out the lowest cost basis shares. Thereby, you 290 00:14:24.400 --> 00:14:27.700  know creating a very tax efficient fund vehicle. 291 00:14:27.700 --> 00:14:31.200  The investors still needs to pay tax on their gain 292 00:14:30.200 --> 00:14:33.800  if they sell their shares, right, but the 293 00:14:33.800 --> 00:14:36.700  fund itself can get pretty creative in 294 00:14:36.700 --> 00:14:39.300  in reducing cap games realization. So, 295 00:14:39.300 --> 00:14:42.300  you know, it depends sometimes on the strategy, you know, 296 00:14:42.300 --> 00:14:44.900  fixing strategies might not be as 297 00:14:45.100 --> 00:14:48.600 Efficient in an ETF as as Equity strategies and some 298 00:14:48.600 --> 00:14:51.200  mutual funds can certainly be very tax efficient. So, you know, 299 00:14:51.200 --> 00:14:54.300  it comes down to you know, I think education getting the 300 00:14:54.300 --> 00:14:57.200  right investment strategy and then, you know also choosing the right vehicle 301 00:14:57.200 --> 00:15:00.800  now, that's that's really interesting and we've had conversations 302 00:15:00.800 --> 00:15:03.100  on the differences between ETFs and mutual funds on 303 00:15:03.100 --> 00:15:06.300  this podcast. And what's really fascinating to me again, 304 00:15:06.300 --> 00:15:09.300  I'm gonna use the term convenient byproduct the creation of 305 00:15:09.300 --> 00:15:12.900  redemption process of an ETF isn't designed 306 00:15:12.900 --> 00:15:15.700  for tax efficiency. It's designed to 307 00:15:15.700 --> 00:15:18.200  making sure that the 308 00:15:18.200 --> 00:15:21.300  nav is equal to the underlying basket of 309 00:15:21.300 --> 00:15:24.700  stocks in that process in itself makes ETFs 310 00:15:24.700 --> 00:15:26.100  extremely tax efficient. 311 00:15:26.900 --> 00:15:29.900 So it's not the goal but it is is something 312 00:15:29.900 --> 00:15:33.700  that you get through that process, which is interesting. Okay, 313 00:15:32.700 --> 00:15:35.300  so just kind of recap here for 314 00:15:35.300 --> 00:15:36.600  our investors. 315 00:15:38.400 --> 00:15:41.100 When considering your tax status with your 316 00:15:41.100 --> 00:15:44.700  portfolios consider what we call an evidence-based 317 00:15:44.700 --> 00:15:47.400  investment philosophy Buy and Hold that 318 00:15:47.400 --> 00:15:51.700  tends to lead to not only a greater likelihood of outperformance 319 00:15:50.700 --> 00:15:53.100  by staying the course, but it 320 00:15:53.100 --> 00:15:56.500  reduces frictions reduces transactions in 321 00:15:56.500 --> 00:16:00.400  the portfolio. Thus leading to a higher level of tax efficiency consider 322 00:15:59.400 --> 00:16:03.000  the vehicles that you're using when using 323 00:16:02.300 --> 00:16:06.100  open-ended mutual funds gravitate towards 324 00:16:05.100 --> 00:16:08.400  more passively managed growing mutual 325 00:16:08.400 --> 00:16:12.000  funds ETFs certainly have tax benefits and 326 00:16:11.200 --> 00:16:14.400  for those investors that are deploying a 327 00:16:14.400 --> 00:16:17.200  direct indexing strategy. There's certainly more 328 00:16:17.200 --> 00:16:21.100  opportunities through the sheer number of names to identify losses 329 00:16:20.100 --> 00:16:23.500  to perform ongoing tax loss harvesting 330 00:16:23.500 --> 00:16:26.200  and then lastly Glenn against thanks for 331 00:16:26.200 --> 00:16:29.700  joining us adding a long short 332 00:16:29.700 --> 00:16:33.100  extension a 1:30 strategy certainly can 333 00:16:32.100 --> 00:16:36.100  help not only from a diversification standpoint, 334 00:16:35.100 --> 00:16:37.200  but also from 335 00:16:38.300 --> 00:16:42.000 Alpha generating strategy. So Glenn. 336 00:16:41.200 --> 00:16:44.300  Thank you so much for your time Phil. Thank you for joining us 337 00:16:44.300 --> 00:16:47.200  here for our listeners. Thank you for for listening to 338 00:16:47.200 --> 00:16:50.200  us. You can access this podcast and all of 339 00:16:50.200 --> 00:16:53.900  our podcasts and our series anywhere you get your podcasts and 340 00:16:53.900 --> 00:16:56.000  I look forward to our conversation next time. Thank you 341 00:16:56.200 --> 00:16:59.800  so much gentlemen, thank you. Thanks Cemetery Partners. LLC 342 00:16:59.800 --> 00:17:02.600  is an investment advisor firm registered with 343 00:17:02.600 --> 00:17:05.400  the Securities and Exchange Commission The Firm only 344 00:17:05.400 --> 00:17:08.300  transacts business in states where it is properly 345 00:17:08.300 --> 00:17:11.600  registered or excluded or Exempted from 346 00:17:11.600 --> 00:17:14.300  registration requirements registration of 347 00:17:14.300 --> 00:17:17.400  an investment advisor does not imply any specific level 348 00:17:17.400 --> 00:17:20.600  of skill or training and does not constitute an 349 00:17:20.600 --> 00:17:23.700  endorsement of the firm by the commission. No one 350 00:17:23.700 --> 00:17:27.200  should assume that future performance of any specific investment investment 351 00:17:26.200 --> 00:17:30.200  strategy product or non-investment 352 00:17:29.200 --> 00:17:32.000  related content made reference to 353 00:17:32.600 --> 00:17:35.600  directly or indirectly in this material will be profitable. 354 00:17:36.600 --> 00:17:39.100 As with any investment strategy there is the 355 00:17:39.100 --> 00:17:42.700  possibility of profitability as well as loss due 356 00:17:42.700 --> 00:17:45.400  to various factors including changing market 357 00:17:45.400 --> 00:17:47.800  conditions and/or applicable laws. 358 00:17:48.600 --> 00:17:51.700 Content may not be reflective of current opinions 359 00:17:51.700 --> 00:17:54.800  or positions. Please note the material 360 00:17:54.800 --> 00:17:57.200  is provided for educational and background use 361 00:17:57.200 --> 00:18:00.700  only moreover. 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The “Tax-Man” cometh! As this tax season proceeds ever forward, many investors are asking themselves the same question - “am I going to take a large tax-hit this year?” We cannot say how much you'll be taxed on your present investments. But, we believe it's possible to structure your portfolio in a manner that mitigates tax-loss, and, leaves more money in your respective pockets. Joining us today is Philip McDonald, CFA, CAIA, Symmetry's Managing Director of Research and Investments & Glenn Shirley, CAIA, Head of Investor Relations for Quantinno, to explain how investors can more effectively structure their portfolios and avoid an excess of taxation. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions.   Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.   Transcript:   00:00:01.800 --> 00:00:07.400 Hello everyone. 1 00:00:07.400 --> 00:00:10.800  Welcome to unfiltered Finance. This is your host Tom Romano. 2 00:00:10.800 --> 00:00:13.800  I want to welcome you all back. We have a very 3 00:00:13.800 --> 00:00:17.100  interesting topic to discuss with you today. It's 4 00:00:16.100 --> 00:00:19.400  the notion of investors keeping more money in 5 00:00:19.400 --> 00:00:22.900  their pockets by bringing tax management into 6 00:00:22.900 --> 00:00:25.300  their investment Holdings. Not only are 7 00:00:25.300 --> 00:00:28.200  we going to talk about tax management, but some of the things investors should 8 00:00:28.200 --> 00:00:31.200  be considering in terms of how they view Capital markets how they should be 9 00:00:31.200 --> 00:00:34.400  investing and then we have a couple of special guests 10 00:00:34.400 --> 00:00:38.000  to talk about some additional strategies that investors should 11 00:00:37.400 --> 00:00:40.700  consider in terms of bringing tax 12 00:00:40.700 --> 00:00:43.700  Alpha if you will to the table so joining 13 00:00:43.700 --> 00:00:46.100  us is Phil McDonald who is the 14 00:00:46.100 --> 00:00:49.400  president of the panoramic trust and managing director of 15 00:00:49.400 --> 00:00:52.700  research of symmetry Partners as well as Glenn Shirley 16 00:00:52.700 --> 00:00:55.700  who is a principal and head of investor relations 17 00:00:55.700 --> 00:00:58.200  at quantino Capital Management Glen and 18 00:00:58.200 --> 00:01:01.500  Phil. Thank you so much for joining us here today. Thanks for having me tone. Thanks Tom. 19 00:01:01.500 --> 00:01:01.800  It's great. 20 00:01:01.900 --> 00:01:04.900 be with you, you know at quantino 100% of 21 00:01:04.900 --> 00:01:07.200  our focus is on taxable investors and 22 00:01:07.900 --> 00:01:10.500 We're managing portfolios while also seeking 23 00:01:10.500 --> 00:01:13.300  to generate really consistent and strong tax benefits 24 00:01:13.300 --> 00:01:16.800  for clients. And that goal is to maximize their 25 00:01:16.800 --> 00:01:19.400  after-tax wealth to help them keep as much return as possible 26 00:01:19.400 --> 00:01:22.200  year to year and we couldn't be more thrilled to partner with Symmetry and 27 00:01:22.200 --> 00:01:25.200  the incredible advisors that you serve. So thanks 28 00:01:25.200 --> 00:01:28.300  for having us pleasure to have you both. I look forward 29 00:01:28.300 --> 00:01:31.300  to to the today's dialogue. Sometimes taxes aren't the 30 00:01:31.300 --> 00:01:34.300  most interesting topic. However, I think that 31 00:01:34.300 --> 00:01:37.300  there's some very important information that investors should 32 00:01:37.300 --> 00:01:40.700  be considering in terms of how they invest their assets. And 33 00:01:40.700 --> 00:01:43.000  so thank you both for joining us. There's a couple 34 00:01:43.100 --> 00:01:46.100  of different angles. I want to take this conversation, right? And the first 35 00:01:46.100 --> 00:01:49.000  one I think I want to to go towards is 36 00:01:50.100 --> 00:01:53.500 Specific investment philosophies, right? So Phil we adhere 37 00:01:53.500 --> 00:01:57.300  to what we refer to as an evidence-based investment philosophy allowing 38 00:01:56.300 --> 00:01:59.200  markets to produce the returns that 39 00:01:59.200 --> 00:02:03.300  are investors are entitled to at the end of the day. So talk 40 00:02:02.300 --> 00:02:05.700  to us a little bit from a tax standpoint 41 00:02:05.700 --> 00:02:08.200  the benefits of an evidence-based investment 42 00:02:08.200 --> 00:02:09.500  philosophy versus 43 00:02:10.500 --> 00:02:13.500 Paying for Alpha or active 44 00:02:13.500 --> 00:02:16.600  money management. Mm-hmm. No, you raise a erase. 45 00:02:16.600 --> 00:02:19.700  Very good point Tom. So our investment philosophy all 46 00:02:19.700 --> 00:02:22.800  often refer to it as multi-factor investing. It 47 00:02:22.800 --> 00:02:27.300  involves specific rules quantitative indicators 48 00:02:26.300 --> 00:02:29.800  that research for 49 00:02:29.800 --> 00:02:32.100  a very long time has indicated, you know 50 00:02:32.100 --> 00:02:35.400  might create a premium over time. So following, you know, 51 00:02:35.400 --> 00:02:38.900  a value and small and momentum and high quality 52 00:02:38.900 --> 00:02:41.600  High profitability type of strategy you might 53 00:02:41.600 --> 00:02:44.700  expect to do a little bit better than just a cap weighted 54 00:02:44.700 --> 00:02:47.300  index over time what you get with 55 00:02:47.300 --> 00:02:50.900  that again is, you know, rules-based very Diversified. So 56 00:02:50.900 --> 00:02:53.700  for the most part low turnover right there, 57 00:02:53.700 --> 00:02:56.300  there are there are some strategies that have 58 00:02:56.300 --> 00:02:59.000  a little turnover specifically momentum. You probably have a little 59 00:02:59.100 --> 00:03:02.600  bit higher turnover than a market capitalization way to index but 60 00:03:02.600 --> 00:03:05.600  generally speaking, you know, these signals are relatively slow 61 00:03:05.600 --> 00:03:08.500  moving you're very diverseified. Each holding is 62 00:03:08.500 --> 00:03:10.200  a small percentage of your portfolio. 63 00:03:10.700 --> 00:03:13.300 So for the most part, you don't have to turn over 64 00:03:13.300 --> 00:03:16.400  the portfolio very often. You don't have to trade a lot sell a 65 00:03:16.400 --> 00:03:19.200  lot to reposition into the into the next 66 00:03:19.200 --> 00:03:22.700  Holdings you would want. I mentioned momentum alone has has a 67 00:03:22.700 --> 00:03:25.900  higher turnover as an individual strategy. There are 68 00:03:25.900 --> 00:03:29.100  benefits in putting it together with other factors specifically 69 00:03:28.100 --> 00:03:31.100  momentum and value work very well 70 00:03:31.100 --> 00:03:35.000  together because they're negatively correlated and in the same portfolio, 71 00:03:34.600 --> 00:03:37.000  the the turnover momentum can be 72 00:03:37.600 --> 00:03:41.000  somewhat counteracted in reduced by having other factors 73 00:03:40.200 --> 00:03:43.200  in there specifically value. So the 74 00:03:43.200 --> 00:03:46.400  pairing of factors can help with the tax efficiency of 75 00:03:46.400 --> 00:03:49.200  the portfolio, right momentum by definition is a high 76 00:03:49.200 --> 00:03:53.100  turnover strategy. Meaning there's a lot of trading right now this 77 00:03:52.100 --> 00:03:55.800  this signal is you know, essentially a year 78 00:03:55.800 --> 00:03:58.300  or so a little less than a year. So you would 79 00:03:58.300 --> 00:04:01.200  expect and that's the 80 00:04:01.200 --> 00:04:04.400  standard kind of academic one year price momentum type of 81 00:04:04.400 --> 00:04:07.700  indicator quantitative rule. So you'd 82 00:04:07.700 --> 00:04:10.400  expect momentum to lead to changes at about 83 00:04:10.800 --> 00:04:14.500 Near Horizon your portfolio, which is especially inconvenient 84 00:04:13.500 --> 00:04:16.300  to with regard to tax 85 00:04:16.300 --> 00:04:19.600  law because you know, you have the short-term long term type of 86 00:04:19.600 --> 00:04:22.300  cap gain consideration as well. Sure. So I 87 00:04:22.300 --> 00:04:25.400  mean we've had a lot of conversations about on this podcast about 88 00:04:25.400 --> 00:04:28.100  a fishing markets diversification Buy and Hold 89 00:04:28.100 --> 00:04:31.600  stay the course, but what I'm hearing you say is that just from a 90 00:04:31.600 --> 00:04:34.500  tax standpoint it almost sounds like it's a convenient byproduct of 91 00:04:34.500 --> 00:04:37.300  it hearing to a buy an old strategy. That's a 92 00:04:37.300 --> 00:04:40.700  great way to think about it and you you mentioned relative to 93 00:04:40.700 --> 00:04:43.400  other strategies. So I want to respond directly to 94 00:04:43.400 --> 00:04:46.300  that as well. So let's just call, you know, 95 00:04:46.300 --> 00:04:49.300  multi-factor Diversified investing as a strategy 96 00:04:49.300 --> 00:04:52.400  and investment philosophy relative to you know, 97 00:04:52.400 --> 00:04:55.800  kind of old-fashioned active management where a 98 00:04:55.800 --> 00:04:58.500  manager is picking and choosing you were stocks 99 00:04:58.500 --> 00:05:02.000  maybe reacting to Market events 100 00:05:01.100 --> 00:05:04.400  making predictions turning the portfolio over, 101 00:05:04.400 --> 00:05:07.400  you know, if you know, each position is about 10% 102 00:05:07.400 --> 00:05:10.100  you know, just selling one position creates a lot 103 00:05:10.100 --> 00:05:10.700  of turnover. 104 00:05:10.700 --> 00:05:13.400 Or so typically those actively managed strategies 105 00:05:13.400 --> 00:05:16.500  that are more concentrated and and require more 106 00:05:16.500 --> 00:05:19.300  trading are less tax efficient. Lord know 107 00:05:19.300 --> 00:05:22.800  that absolutely makes sense and Glenn. I know that you share in our 108 00:05:22.800 --> 00:05:25.400  view on how Capital markets work. Do you 109 00:05:25.400 --> 00:05:28.500  care to add anything to fills comments? Well, I think tax laws 110 00:05:28.500 --> 00:05:32.200  harvesting in general is a perfect strategy 111 00:05:31.200 --> 00:05:34.600  to use evidence based investing 112 00:05:34.600 --> 00:05:37.100  and I say that because tax laws are 113 00:05:37.100 --> 00:05:40.300  visiting at its core is you have names in the portfolio that 114 00:05:40.300 --> 00:05:43.300  are essentially winners. They've appreciated we want 115 00:05:43.300 --> 00:05:45.400  to hold those continue to hold those names. 116 00:05:46.300 --> 00:05:49.700 But you're gonna have stocks that have gone down those stocks 117 00:05:49.700 --> 00:05:52.400  in a really simple example you 118 00:05:52.400 --> 00:05:55.400  would sell but at that moment when you sell that 119 00:05:55.400 --> 00:05:55.700  name. 120 00:05:56.500 --> 00:05:58.300 You have to replace it with another stock. 121 00:05:59.300 --> 00:06:02.600 So at that moment, that's a perfect time to utilize 122 00:06:02.600 --> 00:06:05.200  your evidence-based beliefs. If 123 00:06:05.200 --> 00:06:08.100  you want to tilt the portfolio toward cheaper stocks or 124 00:06:08.100 --> 00:06:11.900  stocks with better attributes of quality or profitability. If you 125 00:06:11.900 --> 00:06:14.400  add that in to the stock 126 00:06:14.400 --> 00:06:17.500  selection of replacing that name via, which 127 00:06:17.500 --> 00:06:20.200  you've realized that tax loss then we believe you 128 00:06:20.200 --> 00:06:23.200  can add some nice return Over The Benchmark over 129 00:06:23.200 --> 00:06:23.400  time. 130 00:06:24.100 --> 00:06:28.100 So yeah tax loss harvesting and offering after tax improvements 131 00:06:27.100 --> 00:06:30.200  for clients can type very nicely with 132 00:06:30.200 --> 00:06:31.700  evidence-based investing. 133 00:06:32.400 --> 00:06:35.500 Yeah, I think that intentional turnover if you will with 134 00:06:35.500 --> 00:06:39.000  tasks lost harvesting does open up the door for some creativity 135 00:06:38.500 --> 00:06:41.600  is what I'm hearing. You say Glenn in order 136 00:06:41.600 --> 00:06:45.600  of enhancing returns. I mean I've seen in the past people liquidata 137 00:06:44.600 --> 00:06:47.600  position, they might hold cash for 30 138 00:06:47.600 --> 00:06:49.700  days or might replace it with an ETF. 139 00:06:50.700 --> 00:06:53.400 But Glenn what I'm hearing you say is that when that happens, there's 140 00:06:53.400 --> 00:06:54.600  opportunities to be a little bit more. 141 00:06:55.700 --> 00:06:58.900 Creative I guess the word when it comes to reinvesting those 142 00:06:58.900 --> 00:07:01.400  assets special specifically 143 00:07:01.400 --> 00:07:04.500  through a factor lens, right? That's right. And and 144 00:07:04.500 --> 00:07:07.300  I would also add Tom that's one advantage of 145 00:07:07.300 --> 00:07:10.600  the Symmetry platform versus maybe other tax loss 146 00:07:10.600 --> 00:07:13.700  harvesting options is that you know with with quantino 147 00:07:13.700 --> 00:07:16.600  involved we can add a modest long short extension 148 00:07:16.600 --> 00:07:19.300  to a strategy which gives it some 149 00:07:19.300 --> 00:07:22.400  unique advantages versus long only text less harvesting so 150 00:07:23.200 --> 00:07:26.800 And long only tax loss harvesting. You'll typically have a risk budget. 151 00:07:26.800 --> 00:07:29.500  So to speak, you know, there's only so much 152 00:07:29.500 --> 00:07:32.600  deviation versus The Benchmark the clients willing 153 00:07:32.600 --> 00:07:32.700  to take 154 00:07:33.600 --> 00:07:35.200 but with that risk budget 155 00:07:35.800 --> 00:07:38.300 If you do tilt toward maybe you're 156 00:07:38.300 --> 00:07:41.500  evidence-based beliefs would maybe value momentum 157 00:07:41.500 --> 00:07:44.900  you're taking up a little bit of that rich risk budget. So 158 00:07:44.900 --> 00:07:48.000  by taking up that risk budget, you're reducing the 159 00:07:47.800 --> 00:07:50.300  expected tax benefit because you're a 160 00:07:50.300 --> 00:07:52.400  little bit more constrained and tax less harvesting. 161 00:07:53.400 --> 00:07:56.200 So one disadvantage of perhaps long only text less 162 00:07:56.200 --> 00:07:59.800  harvesting with the long short extension that long 163 00:07:59.800 --> 00:08:02.500  short extension itself is the engine for tax benefit 164 00:08:02.500 --> 00:08:03.100  generation. 165 00:08:03.800 --> 00:08:06.300 So you can do a lot of created them things in 166 00:08:06.300 --> 00:08:09.100  the portfolio. You could tilt toward your your factors and 167 00:08:09.100 --> 00:08:12.900  your in your beliefs, but you're not giving up any expected 168 00:08:12.900 --> 00:08:13.600  tax benefit. 169 00:08:14.600 --> 00:08:17.400 If you're if you're employing that long short extension. 170 00:08:18.300 --> 00:08:22.300 Yeah, I kind of want to hang on that point Glen because we say 171 00:08:21.300 --> 00:08:25.100  and Phil I think would agree with with you 172 00:08:24.100 --> 00:08:27.000  that you know, there's no such thing as 173 00:08:27.100 --> 00:08:29.200  a perfect portfolio, right? Every portfolio is 174 00:08:30.200 --> 00:08:33.500 As it's trade-offs or is 175 00:08:33.500 --> 00:08:37.500  a compromise if you will and if you want tax efficiency 176 00:08:36.500 --> 00:08:40.400  as a main goal Factor investing 177 00:08:40.400 --> 00:08:43.200  might not be the best way to do it. It's a 178 00:08:43.200 --> 00:08:47.000  better way of doing it versus just a beta portfolio. But 179 00:08:46.100 --> 00:08:49.500  what I'm hearing you say Glens you get kind of The Best of Both Worlds 180 00:08:49.500 --> 00:08:52.500  by utilizing things like margin and 181 00:08:52.500 --> 00:08:55.400  short positions. Is that correct? I would 182 00:08:55.400 --> 00:08:58.900  I would agree that I would think the long short extension 183 00:08:58.900 --> 00:09:02.100  itself introduces more creativity in 184 00:09:01.100 --> 00:09:06.000  the portfolio because that 185 00:09:04.500 --> 00:09:07.800  engine of tax benefit generation 186 00:09:07.800 --> 00:09:10.900  is there it doesn't depend on the underlying portfolio 187 00:09:10.900 --> 00:09:13.500  for those strong and consistent text benefits. So, 188 00:09:14.400 --> 00:09:17.400 You have a lot more flexibility to implement the core part 189 00:09:17.400 --> 00:09:20.200  of that portfolio as you see fit. Sure. No, I think that makes 190 00:09:20.200 --> 00:09:24.000  a lot of sense. There's a lot of strategies that we're deploying now the 13030 191 00:09:23.300 --> 00:09:27.200  which you're alluding to Glenn I think is very interesting but filament 192 00:09:26.200 --> 00:09:29.400  in our experience, we've seen our new 193 00:09:29.400 --> 00:09:33.100  favorite word ossification, right which essentially means 194 00:09:32.100 --> 00:09:35.400  that when you own a a basket of 195 00:09:35.400 --> 00:09:39.300  security is whether it's ETS mutual funds are stocks at some 196 00:09:38.300 --> 00:09:42.000  point you get to an area 197 00:09:41.200 --> 00:09:44.300  over time where you can't do anything 198 00:09:44.300 --> 00:09:48.000  with that portfolio because of embedded gains, right 199 00:09:47.300 --> 00:09:51.100  and we've seen that over the years with our portfolios. 200 00:09:50.100 --> 00:09:53.700  Can you comment a little bit on that? Yeah, absolutely and 201 00:09:54.900 --> 00:09:57.200 The the irony in that 202 00:09:57.200 --> 00:10:00.300  situation is you should want to get there right because 203 00:10:00.300 --> 00:10:03.200  you want your portfolio to increase in value. So 204 00:10:03.200 --> 00:10:06.600  the way you you get to the point of having 205 00:10:06.600 --> 00:10:09.500  no unrealized losses in your portfolio to 206 00:10:09.500 --> 00:10:13.100  clip and realize for for tax efficient 207 00:10:12.100 --> 00:10:15.100  repositioning is your portfolio goes up 208 00:10:15.100 --> 00:10:19.200  over time and there's some interesting research on this. I think there's broad 209 00:10:18.200 --> 00:10:21.500  agreement that even in a 210 00:10:21.500 --> 00:10:24.300  diversified long only portfolio. You probably 211 00:10:24.300 --> 00:10:27.200  only have a single digit number of years, you know, some of 212 00:10:27.200 --> 00:10:30.200  it's going to depend on your assumptions and where the market goes and and how 213 00:10:30.200 --> 00:10:33.200  you've invested and how your tax Lots look but, you know, 214 00:10:33.200 --> 00:10:36.600  three four five years. Maybe might be the limit 215 00:10:36.600 --> 00:10:38.400  you have to do. 216 00:10:39.100 --> 00:10:42.900 Efficient tax less harvesting and that type of portfolio before you 217 00:10:42.900 --> 00:10:45.300  have to start to really give on the 218 00:10:45.300 --> 00:10:48.200  risk budget and and we refer to this idea 219 00:10:48.200 --> 00:10:51.700  of tracking error, which is you know, how different returns essentially 220 00:10:51.700 --> 00:10:54.100  will look relative to a benchmark and you start 221 00:10:54.100 --> 00:10:57.600  to to need to accept a lot of a lot of tracking error. If 222 00:10:57.600 --> 00:11:00.700  you're not willing to accept some realization of gains in 223 00:11:00.700 --> 00:11:03.500  in managing that portfolio. So all of a sudden, you know 224 00:11:03.500 --> 00:11:06.400  portfolio you you might be paying somebody to manage and 225 00:11:06.400 --> 00:11:09.700  do tax laws harvesting on becomes something 226 00:11:09.700 --> 00:11:12.400  that might look a little bit more like an expensive 227 00:11:12.400 --> 00:11:15.100  and noisy index. You don't have the ability to 228 00:11:15.100 --> 00:11:18.500  do many transactions in that so, you know, the 1330 that 229 00:11:18.500 --> 00:11:21.100  you and Glenn have started to talk about really frees up 230 00:11:21.100 --> 00:11:24.800  the opportunity to do something with that portfolio sure 231 00:11:24.800 --> 00:11:27.600  and you know, we talked a lot about direct indexing you 232 00:11:27.600 --> 00:11:30.400  and I did a podcast of a few episodes ago 233 00:11:30.400 --> 00:11:31.900  about direct indexing. 234 00:11:32.400 --> 00:11:35.700 And the more names the more tickers the 235 00:11:35.700 --> 00:11:38.200  more opportunity you have to harvest losses, but even 236 00:11:38.200 --> 00:11:41.100  with direct indexing when you hold maybe a hundred or so 237 00:11:41.100 --> 00:11:44.200  underlying stocks you do get it 238 00:11:44.200 --> 00:11:48.300  to a period where you you're eventually going to hold a basket 239 00:11:47.300 --> 00:11:50.600  of very low cost basis with 240 00:11:50.600 --> 00:11:52.900  high embedded gains securities. 241 00:11:53.500 --> 00:11:56.100 And so and the irony is that's the goal. 242 00:11:56.100 --> 00:11:59.100  You had alluded to like we want to see games in our 243 00:11:59.100 --> 00:12:02.100  portfolio. However, you know, we want our investors to be 244 00:12:02.100 --> 00:12:06.500  able to keep more in their pockets through through tax efficiency. So clunky. 245 00:12:05.500 --> 00:12:08.000  We started going down the path of the 246 00:12:08.900 --> 00:12:11.800  1330 strategy, right and in direct indexing 247 00:12:11.800 --> 00:12:14.600  certainly is a step up from a tax efficiency standpoint. 248 00:12:14.600 --> 00:12:17.300  It certainly helps describe for us a little bit about 249 00:12:17.300 --> 00:12:20.500  how that 130 30 works and multiple Market 250 00:12:20.500 --> 00:12:23.400  environments if you will sure that you 251 00:12:23.400 --> 00:12:26.600  Tom so, you know at the end of the day if you 252 00:12:26.600 --> 00:12:29.900  have a hundred dollars of a direct indexing portfolio 253 00:12:31.900 --> 00:12:34.400 maybe assume that direct indexing portfolio maybe 254 00:12:34.400 --> 00:12:37.900  has a 50% cost basis or a 60% cost basis 255 00:12:37.900 --> 00:12:40.200  that tends to be roughly the cost basis where 256 00:12:41.100 --> 00:12:44.700 You're kind of handcuffed from a tax benefit generation perspective. 257 00:12:44.700 --> 00:12:47.600  You know what quantina would do would be take 258 00:12:47.600 --> 00:12:50.800  that $100 portfolio use the the margin inherent 259 00:12:50.800 --> 00:12:52.800  in that account just like clients who 260 00:12:53.500 --> 00:12:56.200 You know borrow us modest amount from their Equity port for 261 00:12:56.200 --> 00:12:59.600  those from time to time use that same margin capability and then 262 00:12:59.600 --> 00:13:03.000  we're going to go long thirty dollars in short 263 00:13:02.400 --> 00:13:05.600  thirty dollars. So we're building a 130/30 strategy 264 00:13:05.600 --> 00:13:09.200  using the margin borrowing of 265 00:13:09.200 --> 00:13:12.700  that account. No other cash is required. That's an important part and 266 00:13:12.700 --> 00:13:15.000  then if you think about that $30 long $30 267 00:13:15.600 --> 00:13:18.400  short, that's gonna be Diversified across hundreds of stocks. 268 00:13:18.400 --> 00:13:21.600  Every tax loss harvesting strategy needs breath. You 269 00:13:21.600 --> 00:13:24.400  need just a lot of stocks to be invested in because you're gonna have winners 270 00:13:24.400 --> 00:13:27.900  and losers and then you think about that portfolios the 271 00:13:27.900 --> 00:13:30.500  market goes up as the market goes down. You have 272 00:13:30.500 --> 00:13:33.400  a little bit of a structural Advantage versus long only long only 273 00:13:33.400 --> 00:13:36.400  will tend to generate great tax benefits When the market dips 274 00:13:37.300 --> 00:13:40.600 But it struggles to generate tax benefits When the market Rises and 275 00:13:40.600 --> 00:13:43.100  you know clients invest in equities because they believe 276 00:13:43.100 --> 00:13:46.400  the Market's going to rise over time. So that short side of that portfolio is 277 00:13:46.400 --> 00:13:49.900  really important in the consistency of 278 00:13:49.900 --> 00:13:52.300  tax benefits over time. So if you have a 279 00:13:52.300 --> 00:13:55.300  long short portfolio on top of 280 00:13:55.300 --> 00:13:58.800  your direct indexing account, you're able to recharge 281 00:13:58.800 --> 00:14:01.300  tax benefits, you know almost immediately after 282 00:14:01.300 --> 00:14:04.400  you apply that long short extension. We can also use 283 00:14:04.400 --> 00:14:07.300  that to clean up the portfolios as 284 00:14:07.300 --> 00:14:10.700  Phil mentioned over time. You're tracking air may rise, you're making 285 00:14:10.700 --> 00:14:13.700  some deviations versus The Benchmark. So the 286 00:14:13.700 --> 00:14:15.500  risk in that portfolio is also Rising. 287 00:14:16.200 --> 00:14:20.300 So if you have an overexposure to say Information Technology, 288 00:14:19.300 --> 00:14:22.100  those names have done really well over the past 289 00:14:22.100 --> 00:14:26.200  five to 10 years. We can use the short book the short 290 00:14:25.800 --> 00:14:28.900  $30 of that portfolio to reduce 291 00:14:28.900 --> 00:14:31.900  some of that overweight which will help clients reduce 292 00:14:31.900 --> 00:14:34.500  risk in those accounts as well. So it's a combination of 293 00:14:35.400 --> 00:14:38.000 You know using that long short extension obviously to 294 00:14:38.400 --> 00:14:41.100  generate great text benefits and a consistent way for clients, but also 295 00:14:41.100 --> 00:14:45.000  to give them a better and less risky Investment Portfolio along 296 00:14:44.300 --> 00:14:47.300  the way. Thank you gentlemen, that that's very 297 00:14:47.300 --> 00:14:50.100  insightful for our listeners. Thank you for for listening to 298 00:14:50.100 --> 00:14:53.000  us. You can access this podcast and all of 299 00:14:53.100 --> 00:14:56.600  our podcasts and our series anywhere you get your podcasts, we're 300 00:14:56.600 --> 00:14:59.400  gonna continue this conversation. So for our listeners, be sure 301 00:14:59.400 --> 00:15:02.300  to tune in for part two on our topic of investing 302 00:15:02.300 --> 00:15:05.700  in taxes Cemetery Partners. LLC is 303 00:15:05.700 --> 00:15:08.600  an investment advisor firm registered with the Securities 304 00:15:08.600 --> 00:15:11.600  and Exchange Commission, The Firm only transacts business 305 00:15:11.600 --> 00:15:14.500  in states where it is properly registered or 306 00:15:14.500 --> 00:15:18.000  excluded or Exempted from registration requirements 307 00:15:17.300 --> 00:15:20.200  registration of an investment 308 00:15:20.200 --> 00:15:23.400  advisor does not imply any specific level of skill or 309 00:15:23.400 --> 00:15:26.300  training and does not constitute and endorsement 310 00:15:26.300 --> 00:15:29.400  of the firm by the commission. No one should assume that 311 00:15:29.400 --> 00:15:33.100  future performance of any specific investment investment strategy 312 00:15:32.100 --> 00:15:35.300  product or non-in. 313 00:15:35.600 --> 00:15:38.600 Related content made reference to directly or indirectly 314 00:15:38.600 --> 00:15:40.800  in this material will be profitable. 315 00:15:41.800 --> 00:15:44.200 As with any investment strategy there is 316 00:15:44.200 --> 00:15:47.900  the possibility of profitability as well as loss due 317 00:15:47.900 --> 00:15:50.600  to various factors including changing market 318 00:15:50.600 --> 00:15:53.700  conditions. And/or applicable laws the 319 00:15:53.700 --> 00:15:56.900  content may not be reflective of current opinions 320 00:15:56.900 --> 00:15:59.600  or positions. Please note the 321 00:15:59.600 --> 00:16:02.400  material is provided for educational and background use 322 00:16:02.400 --> 00:16:05.900  only moreover. 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Government bonds saw one of the single greatest drops since their inception, value stocks failed to outperform, and international stocks were adversely affected by foreign conflicts. It was a challenging year to say the least. But, we firmly believe that a well-researched strategy of diversification (across asset classes of all types) can help investors endure these down market periods. Listen to the second half of our "2022 Year-in-Perspective" for a detailed review of market performance last year, and, discussion of our hopes for 2023. If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/ You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals. Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. 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Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.   Show Notes/Transcript:   0 00:00:01.800 --> 00:00:07.300 Welcome back 1 00:00:07.300 --> 00:00:10.200  listeners. This is your host Tom romano, and thank you 2 00:00:10.200 --> 00:00:13.300  for joining us for part two of our 2022 year 3 00:00:13.300 --> 00:00:16.900  in perspective. Once again, we're joined by Casey Dillon 4 00:00:16.900 --> 00:00:19.700  to give us some insights on the markets and 5 00:00:19.700 --> 00:00:22.300  how they affected investors throughout the course 6 00:00:22.300 --> 00:00:25.600  of the previous year. Thanks for joining us again. Casey talked us 7 00:00:25.600 --> 00:00:28.400  a little bit. How did the markets react right? I mean we saw both 8 00:00:28.400 --> 00:00:32.200  equities and fixed income have negative 9 00:00:31.200 --> 00:00:34.900  performance for the year. And what 10 00:00:34.900 --> 00:00:37.400  are we seeing from rates of 11 00:00:37.400 --> 00:00:40.000  return from the US as well as abroad? 12 00:00:40.800 --> 00:00:44.200 Yeah, well the the sharp increase 13 00:00:43.200 --> 00:00:46.900  in rates reverberated across 14 00:00:46.900 --> 00:00:49.700  markets everything from stocks to 15 00:00:49.700 --> 00:00:51.300  bonds to real estate to commodities. 16 00:00:52.200 --> 00:00:55.300 And in what we observed was 17 00:00:55.300 --> 00:00:58.900  sort of some interesting things 18 00:00:58.900 --> 00:01:00.400  again threads that 19 00:01:01.300 --> 00:01:05.300 We'd seen coming into 2022 for instance. The 20 00:01:04.300 --> 00:01:08.400  the growth of tech stocks 21 00:01:08.400 --> 00:01:12.100  becoming a huge portion of 22 00:01:11.100 --> 00:01:14.600  the sort of the the US market, 23 00:01:14.600 --> 00:01:17.700  right? So if you you think about the Fang stocks Facebook 24 00:01:17.700 --> 00:01:19.600  Apple Amazon Netflix, Google 25 00:01:20.400 --> 00:01:23.700 They accounted for almost 25% of 26 00:01:23.700 --> 00:01:25.000  the market cap of the US. 27 00:01:25.900 --> 00:01:28.000 Coming into 2022 and they were 28 00:01:28.100 --> 00:01:31.400  the sort of those growth oriented tech stocks were the drivers 29 00:01:31.400 --> 00:01:34.600  of the tremendous returns 30 00:01:34.600 --> 00:01:37.000  that the market had given kind of the past five years. 31 00:01:37.800 --> 00:01:40.800 Or even ten and and to the 32 00:01:40.800 --> 00:01:43.100  point that there were a lot of folks who looked at that and said, 33 00:01:43.100 --> 00:01:47.200  hey, look are we out over our skis here this feels 34 00:01:46.200 --> 00:01:49.800  very much. Like we're entering into kind 35 00:01:49.800 --> 00:01:52.800  of frothy Tech bubble territory 36 00:01:52.800 --> 00:01:56.700  and there were sort of the Hallmark things 37 00:01:55.700 --> 00:01:58.300  trappings of 38 00:01:58.300 --> 00:02:01.200  that that were that felt very familiar to 39 00:02:01.200 --> 00:02:04.300  those of us who lived through the first tech bubble. So you saw things 40 00:02:04.300 --> 00:02:07.300  like the mean stocks right with games stop 41 00:02:07.300 --> 00:02:10.200  and Best Buy and sort of, you know day trading. 42 00:02:11.100 --> 00:02:15.300 To to the overuse of Leverage on these 43 00:02:15.300 --> 00:02:18.200  and a lot of that was kind of being driven by 44 00:02:18.200 --> 00:02:21.300  this idea that you know coming out of the pandemic these 45 00:02:21.300 --> 00:02:24.300  growth stocks. This was the story. These were the story 46 00:02:24.300 --> 00:02:27.700  stocks that people were gravitating to so so what happens people 47 00:02:27.700 --> 00:02:30.900  buy them up they to the point where the valuation 48 00:02:30.900 --> 00:02:33.200  no longer makes sense. If you 49 00:02:33.200 --> 00:02:37.300  take a step back and say well what am I buying right at 50 00:02:36.300 --> 00:02:38.000  the end of the day? 51 00:02:39.700 --> 00:02:42.700 Investing is about purchasing future cash flows. And 52 00:02:42.700 --> 00:02:45.600  so you arrive at a price today based on 53 00:02:45.600 --> 00:02:48.300  some assessment of what you think those future cash flows 54 00:02:48.300 --> 00:02:49.700  are and what you're willing to pay for those. 55 00:02:50.400 --> 00:02:54.300 If you get to a point where you're paying so much today for 56 00:02:53.300 --> 00:02:56.400  you know, this idea of 57 00:02:56.400 --> 00:02:59.400  heightened future cash flows at some 58 00:02:59.400 --> 00:03:00.800  point you enter into a world where? 59 00:03:01.600 --> 00:03:04.300 To to even substantiate the price you're willing 60 00:03:04.300 --> 00:03:07.900  to pay today. You have to have Perfection on those future casuals 61 00:03:07.900 --> 00:03:10.400  going forward and the world doesn't work that way right? You 62 00:03:10.400 --> 00:03:13.100  have a situation where Russia invades Ukraine, you have 63 00:03:13.100 --> 00:03:16.800  a situation where you have, you know pandemics and Avian flues 64 00:03:16.800 --> 00:03:19.300  and things like that. So the world is just in that 65 00:03:19.300 --> 00:03:23.200  need a place where you can predict Perfection 66 00:03:22.200 --> 00:03:26.000  for cash flows for things like yeah, Facebook 67 00:03:25.500 --> 00:03:28.200  Apple Amazon, and in fact what we see 68 00:03:29.100 --> 00:03:32.900 The the case for Perfection fell off the cliff in 2022 69 00:03:32.900 --> 00:03:35.200  because the the earnings for 70 00:03:35.200 --> 00:03:38.300  those companies started to turn around and go the other way and that 71 00:03:38.300 --> 00:03:41.700  caused Market participants to rethink the 72 00:03:41.700 --> 00:03:44.800  valuations that they were giving them and what 73 00:03:44.800 --> 00:03:47.600  we observed was the Fang stocks lost 74 00:03:47.600 --> 00:03:50.500  collectively over three trillion dollars in market 75 00:03:50.500 --> 00:03:53.300  cap over the course of the year. So that that 76 00:03:53.300 --> 00:03:56.700  was a homos 25% of the total market cap lost in 77 00:03:56.700 --> 00:03:59.400  the US was attributable to those handful of stocks 78 00:03:59.400 --> 00:04:02.000  right those those Fang stocks that you allude to. I mean 79 00:04:02.400 --> 00:04:06.200  at some point they were you know, collectively very 80 00:04:05.200 --> 00:04:08.800  large percentage of common us benchmarks 81 00:04:08.800 --> 00:04:11.300  like like the S&P 500, right they've been 82 00:04:11.300 --> 00:04:14.200  inflated and so when there is that correction, you're gonna 83 00:04:14.200 --> 00:04:17.300  feel it across the the industry across the all 84 00:04:17.300 --> 00:04:20.100  the markets rather. So I think that makes a lot of 85 00:04:20.100 --> 00:04:23.800  sense a lot of our investors are evidence-based investors, 86 00:04:23.800 --> 00:04:26.800  you know, Casey you and I share the same investment philosophy 87 00:04:26.800 --> 00:04:28.700  of buying hold. 88 00:04:29.500 --> 00:04:33.200 Long-term taking a factor approach to investment management. 89 00:04:34.800 --> 00:04:37.200 What how did factor-based investors or 90 00:04:37.200 --> 00:04:40.900  evidence-based investors fair in 2022? 91 00:04:40.900 --> 00:04:43.500  Yeah, so if you think about what what 92 00:04:43.500 --> 00:04:47.100  are you doing? If you're a factor investor? Well yours, you're 93 00:04:46.100 --> 00:04:49.700  lazing in on specific characteristics of 94 00:04:49.700 --> 00:04:52.200  risk to invest in and those 95 00:04:52.200 --> 00:04:55.600  character those risk factors those characteristics of 96 00:04:55.600 --> 00:04:58.200  risk that that you have 97 00:04:58.200 --> 00:05:02.300  been identified by way of academic research to have a 98 00:05:01.300 --> 00:05:04.800  premium or return 99 00:05:04.800 --> 00:05:07.600  associated with that that characteristics of risk. 100 00:05:07.600 --> 00:05:10.800  So you're trying to figure it 101 00:05:10.800 --> 00:05:13.500  out and say okay, you know, the the tech stocks 102 00:05:13.500 --> 00:05:17.000  is great example, the thing stocks if things become exceedingly 103 00:05:16.800 --> 00:05:19.300  expensive. Well, what does that 104 00:05:19.300 --> 00:05:22.300  do? Then to the cheaper stocks the stocks that aren't the 105 00:05:22.300 --> 00:05:25.800  thing stocks, right? How are they priced relative 106 00:05:25.800 --> 00:05:28.800  to these these growthier stocks? 107 00:05:29.500 --> 00:05:32.200 What historically we've observed is that 108 00:05:32.200 --> 00:05:35.700  there is a premium associated with valuation. Meaning 109 00:05:35.700 --> 00:05:38.700  the cheaper stocks tend to outperform the 110 00:05:38.700 --> 00:05:40.200  more expensive stocks over time. 111 00:05:41.300 --> 00:05:44.200 And so you enter into a world where the Fang stocks are 112 00:05:44.200 --> 00:05:47.800  ripping the cover off the ball and they're kind of the expensive growth stocks and 113 00:05:47.800 --> 00:05:50.300  by comparison, the the cheaper value 114 00:05:50.300 --> 00:05:54.100  stocks just aren't keeping up with that on the upswing and 115 00:05:53.100 --> 00:05:56.600  you got to a point where the 116 00:05:56.600 --> 00:05:59.100  market was collectively the one of 117 00:05:59.100 --> 00:06:02.900  the most expensive markets in history. Meaning that 118 00:06:02.900 --> 00:06:03.300  the 119 00:06:04.400 --> 00:06:08.200 thighs and weight of those Bank stocks across 120 00:06:07.200 --> 00:06:08.600  the market 121 00:06:09.400 --> 00:06:10.800 and how expensive they become 122 00:06:11.900 --> 00:06:13.100 lifted the whole market up 123 00:06:13.800 --> 00:06:16.300 But the spread between the growth stocks and 124 00:06:16.300 --> 00:06:19.400  the value stocks became as wide as we've 125 00:06:19.400 --> 00:06:22.400  seen really since the tech bubble right going back to 126 00:06:22.400 --> 00:06:25.200  that that the the value stocks were 127 00:06:25.200 --> 00:06:28.500  just so unloved and so beaten down my price relative to 128 00:06:28.500 --> 00:06:31.200  the tech stocks. So if you're 129 00:06:31.200 --> 00:06:34.400  a value investor rolling into a year like 130 00:06:34.400 --> 00:06:38.000  2022 when the the Fang 131 00:06:37.700 --> 00:06:41.000  stock bubble sort of starts to become deflated and 132 00:06:40.100 --> 00:06:44.500  those prices start to to come 133 00:06:43.500 --> 00:06:46.800  back to the mean if 134 00:06:46.800 --> 00:06:47.000  you will. 135 00:06:48.100 --> 00:06:51.400 One consequent of that is is that on a relative 136 00:06:51.400 --> 00:06:55.000  basis those cheaper value stocks start to perform better. Even 137 00:06:54.100 --> 00:06:57.700  if the market is going down as a whole the value 138 00:06:57.700 --> 00:07:00.400  stocks tend to hold up better because it's the 139 00:07:00.400 --> 00:07:02.900  top end of the market the expensive end. That's moving more. 140 00:07:03.700 --> 00:07:06.500 And so we we saw that and in 2022 value 141 00:07:06.500 --> 00:07:09.700  stocks actually did quite well, they did exceedingly well 142 00:07:09.700 --> 00:07:12.400  relative to grow stocks large 143 00:07:12.400 --> 00:07:16.100  cap value outperform large cap growth handily 144 00:07:15.100 --> 00:07:18.600  for 2022. And 145 00:07:18.600 --> 00:07:21.100  so if you're a value a factor investor with 146 00:07:21.100 --> 00:07:24.500  a tilt towards value that was really helping your portfolio in 147 00:07:24.500 --> 00:07:28.100  2022. We also saw factors like 148 00:07:27.100 --> 00:07:30.500  low volatility or 149 00:07:30.500 --> 00:07:33.900  associated with lower volatility stocks 150 00:07:33.900 --> 00:07:36.400  doing well across the 151 00:07:36.400 --> 00:07:39.200  board minimum volatility globally and 152 00:07:39.200 --> 00:07:42.500  also here in the United States. So those stocks that tend 153 00:07:42.500 --> 00:07:44.800  to be less volatile than the market in general. 154 00:07:45.500 --> 00:07:48.000 There's a return premium associated with that and of course 155 00:07:48.300 --> 00:07:52.000  in a year that highly volatile like 2022 those less 156 00:07:51.500 --> 00:07:54.400  volatile stocks had a premium associated with 157 00:07:54.400 --> 00:07:57.200  them relative to everything else. And if you're a factor investor who 158 00:07:57.200 --> 00:08:00.300  has a tilt towards minimum volatility you you reap the 159 00:08:00.300 --> 00:08:03.200  reward on that but it is as we sort of 160 00:08:03.200 --> 00:08:06.300  break out of kind of globally or looking at the US things like 161 00:08:06.300 --> 00:08:09.600  small cap stocks and Emerging Markets continue to do quite well. 162 00:08:09.600 --> 00:08:12.500  So if you had a tilt towards size in your 163 00:08:12.500 --> 00:08:15.500  Factor tilt that that paid off 164 00:08:15.500 --> 00:08:18.500  for you on a more broadly Diversified basis. 165 00:08:19.200 --> 00:08:22.700 And so you you started to see that these these 166 00:08:22.700 --> 00:08:26.000  Factor tilts in at 167 00:08:25.300 --> 00:08:28.100  a time when normally you would think a look 168 00:08:28.100 --> 00:08:31.700  if it's a risk off environment. Well Factor, it is 169 00:08:31.700 --> 00:08:34.700  a risk anyway, right? So you might 170 00:08:34.700 --> 00:08:37.800  expect for the factor exposures to 171 00:08:37.800 --> 00:08:40.300  be down it and to a degree you're 172 00:08:40.300 --> 00:08:43.700  right, but they're also relative to the other things that 173 00:08:43.700 --> 00:08:46.200  they're trading against and in that case they held up 174 00:08:46.200 --> 00:08:47.600  much better than the market in general. 175 00:08:48.300 --> 00:08:51.600 And so a broadly based a broad 176 00:08:51.600 --> 00:08:55.000  Diversified broadly Diversified Factor portfolio 177 00:08:54.100 --> 00:08:57.600  tended to do better on both a relative 178 00:08:57.600 --> 00:09:00.300  and absolute basis than the market in general 179 00:09:00.300 --> 00:09:03.300  did and certainly more so than the Contra points 180 00:09:03.300 --> 00:09:06.800  of that things like growth or more volatile stocks or you 181 00:09:06.800 --> 00:09:09.800  know, large cabs. So so being a factor investor 182 00:09:09.800 --> 00:09:12.500  really was beneficial in 183 00:09:12.500 --> 00:09:14.600  many regards in 2022. 184 00:09:15.300 --> 00:09:18.300 Yeah, we've seen that in the performance of a number of 185 00:09:18.300 --> 00:09:21.200  portfolios that that you and I have talked about over the 186 00:09:21.200 --> 00:09:25.200  years that you know, a diversified portfolio factors in 187 00:09:24.200 --> 00:09:27.400  2022 albeit was 188 00:09:27.400 --> 00:09:30.600  still in the red at the end of the year, but not nearly as as bad 189 00:09:30.600 --> 00:09:34.100  as some of those market like portfolios 190 00:09:33.100 --> 00:09:36.900  or benchmarks that we've seen. I do 191 00:09:36.900 --> 00:09:39.300  want to hang on the value conversation a little bit. Right? 192 00:09:39.300 --> 00:09:42.400  We you know value as a factor you and 193 00:09:42.400 --> 00:09:46.000  I share the the belief that investors should have exposure 194 00:09:45.200 --> 00:09:48.600  to value in their portfolios. And I know 195 00:09:48.600 --> 00:09:51.300  over the years Casey you and I have had shared a cocktail 196 00:09:51.300 --> 00:09:54.300  discussing. What was the underperformance of 197 00:09:54.300 --> 00:09:57.100  value for a number of years. We saw the rise 198 00:09:57.100 --> 00:10:01.300  of the things which we discussed earlier and for 199 00:10:00.300 --> 00:10:03.200  Value investors. I think that they were 200 00:10:03.200 --> 00:10:06.700  someone Vindicated in 2020 to but for 201 00:10:06.700 --> 00:10:09.900  those are out there listening, you know with this outperformance 202 00:10:09.900 --> 00:10:12.300  of value. Is there still room for Value to 203 00:10:12.300 --> 00:10:14.500  continue to outperform in 2023? 204 00:10:15.200 --> 00:10:19.200 You know, I love the quote history rare 205 00:10:18.200 --> 00:10:21.700  rarely repeats itself, but it often Rhymes because 206 00:10:21.700 --> 00:10:25.000  I think that that's incredibly true 207 00:10:24.600 --> 00:10:27.600  across markets in particular and I 208 00:10:27.600 --> 00:10:30.400  heard an a quote that I think shed some light on that and it's 209 00:10:30.400 --> 00:10:33.200  not that history repeats itself. It's that people 210 00:10:33.200 --> 00:10:36.600  repeat themself, right? And so if you think about markets are 211 00:10:36.600 --> 00:10:40.000  made up of people making purchasing and 212 00:10:39.300 --> 00:10:43.000  selling decisions across the board it it's it 213 00:10:42.200 --> 00:10:45.500  should be no surprise that in a similar 214 00:10:45.500 --> 00:10:47.200  type of dynamic or environment. 215 00:10:48.100 --> 00:10:51.300 People might Chase things like large cab growth 216 00:10:51.300 --> 00:10:54.300  tech stocks, right? And so if you look back to 217 00:10:54.300 --> 00:10:57.600  a time that was very similar to that during the tech bubble where 218 00:10:57.600 --> 00:11:00.900  you saw again Tech socks become very expensive and 219 00:11:00.900 --> 00:11:05.300  value stocks kind of be left to languish 220 00:11:03.300 --> 00:11:06.300  on the sidelines for 221 00:11:06.300 --> 00:11:09.300  some time when the tech Bubble Burst, right all of 222 00:11:09.300 --> 00:11:12.900  those growthy tech stocks valuation plummeted 223 00:11:12.900 --> 00:11:15.200  and value stocks had a tremendous run for several 224 00:11:15.200 --> 00:11:15.400  years. 225 00:11:16.700 --> 00:11:17.600 Well, where are we now? 226 00:11:18.200 --> 00:11:21.400 The we see these these Fang stocks the the air going 227 00:11:21.400 --> 00:11:23.300  out of them value having a nice run. 228 00:11:24.300 --> 00:11:27.000 So you might think is the run over. Well, if you 229 00:11:27.300 --> 00:11:30.600  look at the sort of globally the value spreads. 230 00:11:31.300 --> 00:11:35.400 So again cheap versus expensive we are still in 231 00:11:34.400 --> 00:11:37.800  the 90 plus percentile 232 00:11:37.800 --> 00:11:41.000  meaning it still one of the most expensive markets, 233 00:11:40.400 --> 00:11:43.700  right? So if we look at the, you 234 00:11:43.700 --> 00:11:46.400  know, nine out of 10 markets have been cheaper than 235 00:11:46.400 --> 00:11:51.100  the market that we're in currently even after 2022's price 236 00:11:50.100 --> 00:11:53.700  decline. So that tells you that value 237 00:11:53.700 --> 00:11:56.800  stocks, even though they had a tremendous year 238 00:11:56.800 --> 00:11:59.300  in 2022. The potential is there 239 00:11:59.300 --> 00:12:02.700  for them to continue to experience this 240 00:12:02.700 --> 00:12:05.600  reversion to the mean of these expensive stocks 241 00:12:05.600 --> 00:12:08.600  coming back down and value could have 242 00:12:08.600 --> 00:12:12.000  a run akin to what we observed post 243 00:12:11.500 --> 00:12:14.700  the tech bubble in the early 2000 when value 244 00:12:14.700 --> 00:12:17.900  was really dominant for a 245 00:12:17.900 --> 00:12:20.700  good three years in the marketplace. Now, 246 00:12:20.700 --> 00:12:23.800  I'm not suggesting that that it will exactly repeat itself. 247 00:12:23.800 --> 00:12:26.100  But you see the dynamic there in the case 248 00:12:26.100 --> 00:12:29.400  to be made for hey, it looks like there's still some fuel for 249 00:12:29.400 --> 00:12:29.900  this fire. 250 00:12:31.300 --> 00:12:34.200 And it would not be surprising to continue to 251 00:12:34.200 --> 00:12:38.100  see value run relative to the the 252 00:12:37.100 --> 00:12:39.100  more expensive stocks. 253 00:12:39.800 --> 00:12:42.300 Certainly, and you know, I think it's 254 00:12:42.300 --> 00:12:45.300  important for our listeners to know we're by no means suggesting people 255 00:12:45.300 --> 00:12:48.600  should speculate between growth and value. We think that you 256 00:12:48.600 --> 00:12:52.100  know factors specifically value are our 257 00:12:51.100 --> 00:12:55.700  long-term Endeavors and investors who maintain that 258 00:12:55.700 --> 00:12:58.500  exposure tend to do better over time 259 00:12:58.500 --> 00:13:02.000  is what I'm hearing you say and I 260 00:13:01.300 --> 00:13:04.200  and I lived through the tech bubble as you did 261 00:13:04.200 --> 00:13:08.200  and you know, those those years after where value did outperform 262 00:13:07.200 --> 00:13:11.400  they were still poor years, right 2000 263 00:13:10.400 --> 00:13:13.300  2001 weren't positive years in 264 00:13:13.300 --> 00:13:16.500  the market. And do you have any comments on you 265 00:13:16.500 --> 00:13:19.200  know value kind of shining during those downturns when 266 00:13:19.200 --> 00:13:22.500  we say values out performing. It doesn't necessarily I mean values positive, right? 267 00:13:22.500 --> 00:13:25.700  I think this is this the the Crux 268 00:13:25.700 --> 00:13:29.100  of why it's difficult to be a value investor because 269 00:13:28.100 --> 00:13:32.300  I mean sexually value investing 270 00:13:31.300 --> 00:13:34.400  is not hard to get your head around by cheap stuff 271 00:13:34.400 --> 00:13:39.100  and hold it right like that's not hard from sort 272 00:13:37.100 --> 00:13:39.500  of a conceptual. 273 00:13:39.800 --> 00:13:42.500 Went to get the hard part is actually doing it 274 00:13:42.500 --> 00:13:45.600  and being able to be patient through those 275 00:13:45.600 --> 00:13:48.100  periods when it doesn't look like 276 00:13:48.100 --> 00:13:51.300  it's working because those are those come right you 277 00:13:51.300 --> 00:13:54.300  you have those periods where the the tech bubble 278 00:13:54.300 --> 00:13:57.100  occurs where the Fang stocks are ripping the cover off the 279 00:13:57.100 --> 00:14:00.300  ball for five years in a row and your value stocks are languishing. 280 00:14:01.400 --> 00:14:04.700 Most investors the vast majority of investors cannot 281 00:14:04.700 --> 00:14:05.600  sit still through that. 282 00:14:06.300 --> 00:14:10.600 that's why value investing well easy to to 283 00:14:09.600 --> 00:14:12.400  sort of implement is hard 284 00:14:12.400 --> 00:14:15.700  to maintain and yet right what 285 00:14:15.700 --> 00:14:18.600  why do why do folks like you and I gravitate to 286 00:14:18.600 --> 00:14:21.500  Value as an important element of 287 00:14:21.500 --> 00:14:24.800  kind of a broad-based factor portfolio because 288 00:14:24.800 --> 00:14:27.600  the data going back over time 289 00:14:27.600 --> 00:14:30.300  suggests that if you can be patient 290 00:14:30.300 --> 00:14:33.500  through those periods when values not working the 291 00:14:33.500 --> 00:14:36.400  payoff for you when it comes in times 292 00:14:36.400 --> 00:14:39.200  like after the tech bubble when it comes when it 293 00:14:39.200 --> 00:14:42.300  comes in times like 2022 the payoff for 294 00:14:42.300 --> 00:14:44.500  you for being patient through that period 295 00:14:45.400 --> 00:14:49.300 And maintaining that that value exposure is 296 00:14:48.300 --> 00:14:51.600  significant enough such that 297 00:14:51.600 --> 00:14:54.700  over the total holding period you you 298 00:14:54.700 --> 00:14:57.100  end up ahead of where you might otherwise have been 299 00:14:57.100 --> 00:15:00.800  had you just had kind of Market level performance right? 300 00:15:00.800 --> 00:15:02.100  Just just broad beta. 301 00:15:02.900 --> 00:15:05.400 And so at the end of the day, you know, the question is, how 302 00:15:05.400 --> 00:15:08.200  do I out? How do I outperform the market? Well, one way to 303 00:15:08.200 --> 00:15:11.300  help perform. The market over time is to tilt towards 304 00:15:11.300 --> 00:15:15.000  these characteristics of risk, which have shown over 305 00:15:14.300 --> 00:15:18.000  time to outperform the market and values 306 00:15:17.100 --> 00:15:20.000  one of those now what I 307 00:15:20.200 --> 00:15:23.600  would say Tom is that it's incredibly difficult to just 308 00:15:23.600 --> 00:15:25.500  be a value investor and that's all you do. 309 00:15:26.100 --> 00:15:29.300 Which is why it's so beneficial to have a 310 00:15:29.300 --> 00:15:33.100  blend of factor exposures to have other things 311 00:15:32.100 --> 00:15:35.400  working when things like value for instance 312 00:15:35.400 --> 00:15:38.900  aren't so a good example of that is momentum, right? So 313 00:15:38.900 --> 00:15:41.300  it momentum and value are really nice 314 00:15:41.300 --> 00:15:44.600  pairing to put together in a portfolio because they're 315 00:15:44.600 --> 00:15:48.200  negatively correlated meaning when when values down 316 00:15:47.200 --> 00:15:50.400  momentum tends to be up and vice versa. 317 00:15:50.400 --> 00:15:53.400  So if the value investor if it's incredibly difficult 318 00:15:53.400 --> 00:15:57.300  to sit through those periods when value is not doing well with momentum 319 00:15:56.300 --> 00:15:59.200  exposures you end up 320 00:15:59.200 --> 00:16:01.100  having things in your portfolio. 321 00:16:02.200 --> 00:16:05.400 Which are picking up what's working and so in the case of the past five 322 00:16:05.400 --> 00:16:07.700  years a broad-based? 323 00:16:08.400 --> 00:16:12.100 Factor multi-factor portfolio would have value stocks 324 00:16:11.100 --> 00:16:15.100  in it, but it would also have some exposure 325 00:16:14.100 --> 00:16:17.200  to the fangs because those are 326 00:16:17.200 --> 00:16:20.400  representing kind of the momentum in the market until you have exposure to 327 00:16:20.400 --> 00:16:23.700  that and and that becomes an easier portfolio for 328 00:16:23.700 --> 00:16:27.300  most people to consume and sit through and the 329 00:16:27.300 --> 00:16:30.100  real magic here is the longer you 330 00:16:30.100 --> 00:16:33.900  can hold on to any of these Factor exposures. The more 331 00:16:33.900 --> 00:16:36.700  you have an expectation that you're going to have performance that's 332 00:16:36.700 --> 00:16:37.200  above Market. 333 00:16:37.900 --> 00:16:40.300 And and the real challenge for everybody is 334 00:16:40.300 --> 00:16:43.500  to sit still long enough to reap 335 00:16:43.500 --> 00:16:46.200  the reward of putting that Capital to risk. So you just trying to 336 00:16:46.200 --> 00:16:49.700  build a portfolio that people can actually stay in 337 00:16:49.700 --> 00:16:53.000  through these Market turmoil these ups 338 00:16:52.300 --> 00:16:56.000  and downs because if they can sit still there, you 339 00:16:55.400 --> 00:16:58.700  know it a bears make 340 00:16:58.700 --> 00:17:01.100  money Bulls make money pigs get slaughtered. Right? What does that mean? 341 00:17:01.100 --> 00:17:04.400  Look regardless of what your philosophy is, if you 342 00:17:04.400 --> 00:17:07.200  maintain that philosophy eventually the market 343 00:17:07.200 --> 00:17:10.400  will come around and rotate to you and pay you off for it. If you 344 00:17:10.400 --> 00:17:13.000  keep jumping from philosophy to philosophy trying to 345 00:17:13.400 --> 00:17:16.200  chase whatever is in front of you and get those returns. That's when 346 00:17:16.200 --> 00:17:19.000  you get slaughtered. That's when the cost of 347 00:17:20.300 --> 00:17:23.700 Trading in and out eats up your returns that 348 00:17:23.700 --> 00:17:26.200  that's when you're catching a falling knife. That's when 349 00:17:26.200 --> 00:17:29.200  all of these things that you hear why you might want to 350 00:17:29.200 --> 00:17:32.300  not want to be a growth investor or a value investor or 351 00:17:32.300 --> 00:17:35.100  right? All of those things can be true. If you're 352 00:17:35.100 --> 00:17:38.800  trying to find those things because the timing is is has 353 00:17:38.800 --> 00:17:41.900  been proven to be elusive if not impossible. So 354 00:17:41.900 --> 00:17:44.000  picking a philosophy and sticking with 355 00:17:44.200 --> 00:17:48.100  it as shown consistently over time to to be the way to go and we 356 00:17:47.100 --> 00:17:51.700  happen to believe in the philosophy of what's been 357 00:17:51.700 --> 00:17:54.100  shown from the academic research to be these 358 00:17:54.100 --> 00:17:57.200  characteristics of risk that pay off over time certainly and so 359 00:17:57.200 --> 00:18:01.300  in a nutshell, it's time in the market versus 360 00:18:00.300 --> 00:18:03.600  timing. The market is the best course of 361 00:18:03.600 --> 00:18:06.600  action. I want to hit upon something 362 00:18:06.600 --> 00:18:09.900  that you're alluding to and that platitude or 363 00:18:09.900 --> 00:18:12.700  it sounds like a platitude to most investors, especially 364 00:18:12.700 --> 00:18:15.400  when the markets down right telling them. I'm 365 00:18:15.400 --> 00:18:18.300  in the market not timing the market that doesn't mean much to somebody 366 00:18:18.300 --> 00:18:19.700  who's like am I gonna be able to retire? 367 00:18:20.200 --> 00:18:23.500 Right, but you have to understand where that platitude 368 00:18:23.500 --> 00:18:26.200  comes from right where where that rule of thumb comes 369 00:18:26.200 --> 00:18:30.600  from any and it is informed by 370 00:18:30.600 --> 00:18:34.400  decades upon Decades of observations 371 00:18:33.400 --> 00:18:36.400  of how markets behave 372 00:18:36.400 --> 00:18:39.600  and where returns to markets come from. Yeah. That's an excellent 373 00:18:39.600 --> 00:18:42.100  point. You were alluding to 374 00:18:42.100 --> 00:18:45.000  diversification Factor diversification but diversification as a whole 375 00:18:45.300 --> 00:18:48.300  and there's one thing I'd like you to comment on, you 376 00:18:48.300 --> 00:18:51.300  know, I've been hearing in Reading in popular press and 377 00:18:51.300 --> 00:18:54.100  in the various industry trade Rags that you know 378 00:18:54.100 --> 00:18:57.700  diversification didn't work in in 2022. My 379 00:18:57.700 --> 00:19:00.200  thought on that is that I think it's a misunderstanding of 380 00:19:00.200 --> 00:19:03.100  how diversification actually works and I'd love to hear your 381 00:19:03.100 --> 00:19:06.100  thoughts on that. Yeah. So you sort of 382 00:19:06.100 --> 00:19:09.400  come back to well. What are your expectations? I went 383 00:19:09.400 --> 00:19:12.600  when when you hear someone like you or 384 00:19:12.600 --> 00:19:16.400  I say, hey a broadly Diversified portfolio is 385 00:19:15.400 --> 00:19:18.900  is the starting point for most 386 00:19:18.900 --> 00:19:19.800  investors like 387 00:19:20.200 --> 00:19:23.500 Everybody should have if you're going to invest you should do it in a 388 00:19:23.500 --> 00:19:26.400  fashion that allows you to take advantage of broad-based diversification. 389 00:19:27.300 --> 00:19:30.800 If your expectation when you hear that is, oh, okay. I'll 390 00:19:30.800 --> 00:19:33.200  never lose money. Well, no that that's not what we're saying, 391 00:19:33.200 --> 00:19:36.500  right? The the point of broad-based diversification 392 00:19:36.500 --> 00:19:39.800  is you're taking off some of the idiosyncratic risk 393 00:19:39.800 --> 00:19:42.200  of any one kind of investment meaning. 394 00:19:43.400 --> 00:19:47.000 All I want to invest the only thing I know about is expensive wine 395 00:19:46.600 --> 00:19:49.200  French wine, right? That's the only thing I know about that. 396 00:19:49.200 --> 00:19:50.200  The only thing I want to invest in 397 00:19:50.900 --> 00:19:53.400 So if that's my investment philosophy the risk 398 00:19:53.400 --> 00:19:57.500  that I have is that the the wine 399 00:19:56.500 --> 00:19:59.800  market goes away people, you know, 400 00:19:59.800 --> 00:20:02.100  they're tasting preferences. They no longer want 401 00:20:02.100 --> 00:20:05.200  to drink expensive wines. We see 402 00:20:05.200 --> 00:20:08.600  a shift in the in the wine market where French wines are are no 403 00:20:08.600 --> 00:20:11.700  longer as highly valued as California wines, for 404 00:20:11.700 --> 00:20:14.100  instance. And if I've invested in 405 00:20:14.100 --> 00:20:17.400  a bunch of French wines, just the shift in the market now, I have 406 00:20:17.400 --> 00:20:20.700  a dramatic impact in my portfolio and or 407 00:20:20.700 --> 00:20:23.400  you know fires in 408 00:20:23.400 --> 00:20:26.700  California and drought in France and 409 00:20:26.700 --> 00:20:29.400  suddenly the wine market has absolutely no 410 00:20:29.400 --> 00:20:32.600  Supply. And so the 411 00:20:32.600 --> 00:20:35.300  price of what you're holding goes up dramatically, but then 412 00:20:35.300 --> 00:20:38.500  when it's gone, it's gone, right and then what do you invest in? So 413 00:20:38.500 --> 00:20:41.300  so the the risk of investing in any one 414 00:20:41.300 --> 00:20:45.600  thing you may know that thing inside and out but it's idiosyncratic 415 00:20:44.600 --> 00:20:47.200  to that thing. You're 416 00:20:47.200 --> 00:20:47.900  investing in like wine. 417 00:20:48.900 --> 00:20:51.700 So, you know the idea is with 418 00:20:51.700 --> 00:20:54.400  diversification. Yeah, okay invest in wine, but while 419 00:20:54.400 --> 00:20:57.900  you're doing that can we find some other things to invest in that are 420 00:20:57.900 --> 00:21:00.600  going to behave differently than Wine does 421 00:21:00.600 --> 00:21:01.100  because 422 00:21:02.200 --> 00:21:05.400 If the risks come to bear for wine, you don't get wiped out. 423 00:21:06.100 --> 00:21:09.400 Right. So we want to invest you know in a fashion 424 00:21:09.400 --> 00:21:12.300  that allows us to sort of achieve these long-term goals without getting 425 00:21:12.300 --> 00:21:15.300  wiped out along the way. So instead of investing in 426 00:21:15.300 --> 00:21:18.100  wine. Maybe we invest in, you know, 427 00:21:18.100 --> 00:21:21.100  small cap stocks in the United States and those are 428 00:21:21.100 --> 00:21:23.200  gonna look and behave very differently than the wine market. 429 00:21:23.600 --> 00:21:27.100 And maybe we invest in Emerging Market 430 00:21:26.100 --> 00:21:29.200  debt because we know that that's gonna 431 00:21:29.200 --> 00:21:32.700  behave differently than Securities and wine 432 00:21:32.700 --> 00:21:35.200  and maybe we invest in treasuries and 433 00:21:35.200 --> 00:21:38.200  maybe right. So as you start to go down that path you look at 434 00:21:38.200 --> 00:21:42.100  all of the different things you can lay around that are going to behave differently 435 00:21:41.100 --> 00:21:44.500  from the other things that you're holding. That's not 436 00:21:44.500 --> 00:21:48.700  to say that when a systematic level 437 00:21:48.700 --> 00:21:51.600  risk comes along like a pandemic or 438 00:21:51.600 --> 00:21:54.500  Rising interest rates that all of those things aren't 439 00:21:54.500 --> 00:21:58.100  going to be impacted by them. They will be right your your 440 00:21:57.100 --> 00:22:00.800  wine your small counts dogs. You're you're 441 00:22:00.800 --> 00:22:03.200  treasuries, right? You're you're emerging market 442 00:22:03.200 --> 00:22:06.400  that all of those things are gonna be impacted if there are 443 00:22:06.400 --> 00:22:09.300  issues that are roiling markets across the 444 00:22:09.300 --> 00:22:12.600  board. And and so if you're expectation going 445 00:22:12.600 --> 00:22:15.300  into a broadly based Diversified portfolio as I'll 446 00:22:15.300 --> 00:22:16.700  never lose money, or it'll never go down. 447 00:22:17.100 --> 00:22:20.200 That's the wrong. I would like to disabuse you of that notion. 448 00:22:21.200 --> 00:22:24.400 What you should expect is if any one or two of these things 449 00:22:24.400 --> 00:22:27.200  are impacted by a risk specific to it. 450 00:22:27.200 --> 00:22:30.500  I'm not going to be wiped out and that's why I would have a 451 00:22:30.500 --> 00:22:33.500  broadly based portfolio Diversified portfolio. Now, 452 00:22:33.500 --> 00:22:36.000  I will say that if a part of your 453 00:22:36.800 --> 00:22:39.800  diversification are things like Factor exposures. Well, you 454 00:22:39.800 --> 00:22:42.400  you end up often doing 455 00:22:42.400 --> 00:22:45.200  better than the market even if the markets down 456 00:22:45.200 --> 00:22:48.200  and your portfolio is down you end up doing a 457 00:22:48.200 --> 00:22:50.100  bit better than the market did in general. 458 00:22:51.100 --> 00:22:54.500 And if you look at like a sick just a generic 60 40 portfolio. 459 00:22:55.400 --> 00:22:57.700 It was one of the worst years on record for. 460 00:22:59.100 --> 00:23:00.600 1640 board folios 461 00:23:01.400 --> 00:23:04.200 because stocks and bonds both went down 462 00:23:04.200 --> 00:23:08.600  dramatically in fact bonds had a historically bad year led 463 00:23:07.600 --> 00:23:10.300  by treasuries which had the 464 00:23:10.300 --> 00:23:13.300  worst year since the you know in 200 and 465 00:23:13.300 --> 00:23:16.300  something years, right? So a 60 40 466 00:23:16.300 --> 00:23:20.500  a broad base 640 portfolio being down is unusual. 467 00:23:19.500 --> 00:23:22.300  It's Unique to have 468 00:23:22.300 --> 00:23:25.300  that experience, but it's also 469 00:23:25.300 --> 00:23:29.100  not unexpected given the the 470 00:23:28.100 --> 00:23:31.100  Catalyst for why all of those 471 00:23:31.100 --> 00:23:31.900  things were down. 472 00:23:32.900 --> 00:23:35.800 That doesn't mean you abandon that that 473 00:23:35.800 --> 00:23:38.300  investing discipline. It just means that 474 00:23:38.300 --> 00:23:43.000  you should expect there are going to be times when broad-based 475 00:23:41.400 --> 00:23:44.100  diversification isn't going to 476 00:23:44.100 --> 00:23:48.800  be the thing that saves you from experiencing a 477 00:23:48.800 --> 00:23:49.500  downmark. 478 00:23:50.300 --> 00:23:53.300 So it sounds like there's like two two things that you're bringing 479 00:23:53.300 --> 00:23:56.800  up here, right diversification certainly provides you with some 480 00:23:56.800 --> 00:23:59.700  protection from concentrated stock concentrated 481 00:23:59.700 --> 00:24:02.300  industry or even sector right? Like you bring 482 00:24:02.300 --> 00:24:06.000  up wine a great way to sort of 483 00:24:06.400 --> 00:24:10.300  balance that out by maintaining diversification. But however diversification is 484 00:24:10.300 --> 00:24:13.600  not going to necessarily protect you from the natural ebb and 485 00:24:13.600 --> 00:24:16.400  flows of the market, right? Those are gonna continue to happen 486 00:24:16.400 --> 00:24:19.400  but the market risk and I 487 00:24:19.400 --> 00:24:23.000  think you would agree is that that's what rewards investors for deploying 488 00:24:22.100 --> 00:24:25.200  their Capital into the market. Why would I invest 489 00:24:25.200 --> 00:24:28.500  broadly in you know, the S&P 500 well because 490 00:24:28.500 --> 00:24:31.300  there's risk associated broadly with the SD, but and 491 00:24:31.300 --> 00:24:34.700  I should be paid for doing so you're absolutely spot on right? Yeah. Why 492 00:24:34.700 --> 00:24:37.200  are we investing in anything because there's risk associated with 493 00:24:37.200 --> 00:24:40.200  it and that risk generates return, right? Yeah risk and return our 494 00:24:40.200 --> 00:24:43.600  absolutely Inseparable and I think it's it behooves investor 495 00:24:43.600 --> 00:24:46.200  to keep that investors to keep that sort of Mantra in 496 00:24:46.200 --> 00:24:49.200  mind so Casey, thank you so much for 497 00:24:49.200 --> 00:24:50.100  your comments. I do have 498 00:24:50.400 --> 00:24:53.500 Last question for you, you know, we covered the current events 499 00:24:53.500 --> 00:24:57.100  how that affected the markets, you know investors are 500 00:24:56.100 --> 00:24:59.400  listeners are looking at the retirement 501 00:24:59.400 --> 00:25:02.500  accounts. They're seeing a lot of red. What advice 502 00:25:02.500 --> 00:25:05.300  would you give investors? What should 503 00:25:05.300 --> 00:25:08.100  they do going into 2023? What are some of the things investors could be 504 00:25:08.100 --> 00:25:11.800  doing now? Well, you know, my my knee jerk 505 00:25:11.800 --> 00:25:14.200  response to that is nothing right. So if you're 506 00:25:14.200 --> 00:25:18.000  if you're a discipline investor maintain that discipline, right? 507 00:25:17.300 --> 00:25:20.600  There's no question 2022 was challenging year 508 00:25:20.600 --> 00:25:23.300  for investors. And there is likely, 509 00:25:23.300 --> 00:25:26.500  you know, these issues that we've been talking about they're not resolved. 510 00:25:26.900 --> 00:25:29.800 Right and in and in fact, there will be other things 511 00:25:29.800 --> 00:25:32.300  that will Royal the markets layered on 512 00:25:32.300 --> 00:25:35.400  top of these like for instance a fight over 513 00:25:35.400 --> 00:25:36.300  the debt ceiling, right? 514 00:25:37.300 --> 00:25:40.700 So there's likely more turbulence ahead. However, right the 515 00:25:40.700 --> 00:25:44.200  the best option for the long-term investor is 516 00:25:43.200 --> 00:25:46.300  to find a philosophy that 517 00:25:46.300 --> 00:25:49.500  makes sense for them build a portfolio around that and 518 00:25:49.500 --> 00:25:53.100  then maintain the course maintain 519 00:25:52.100 --> 00:25:54.200  the discipline. 520 00:25:55.800 --> 00:25:58.300 Through up markets down markets, you know turbulence in 521 00:25:58.300 --> 00:26:02.000  the headlines the it's the discipline of maintaining 522 00:26:01.200 --> 00:26:04.800  that philosophy over time that is provides the 523 00:26:04.800 --> 00:26:07.600  reward for long-term investors and their steadfast 524 00:26:07.600 --> 00:26:08.000  patients. 525 00:26:08.800 --> 00:26:12.700 Through these short-term Market movements or macroeconomic 526 00:26:11.700 --> 00:26:14.300  events are the things 527 00:26:14.300 --> 00:26:18.000  that are going to generate returns for them over the next Century, right? That's 528 00:26:17.500 --> 00:26:20.900  it just is what it is. It's what it has been for 529 00:26:20.900 --> 00:26:23.600  those investors who are looking at 2023 here are 530 00:26:23.600 --> 00:26:26.400  some statistics. Hopefully that will Empower you to maintain 531 00:26:26.400 --> 00:26:30.800  the course over the sort of the past Century 532 00:26:29.800 --> 00:26:32.600  the US has endured 15 533 00:26:32.600 --> 00:26:33.600  recessions. 534 00:26:34.500 --> 00:26:37.700 In 11 of the 15 or 73% in 535 00:26:37.700 --> 00:26:37.800  time. 536 00:26:38.400 --> 00:26:41.500 Returns on stocks were positive two years after the 537 00:26:41.500 --> 00:26:42.300  recession began. 538 00:26:43.200 --> 00:26:46.900 With an annualized average Market return 7.8% So 539 00:26:46.900 --> 00:26:49.800  if you're concern going into 2023 is always 540 00:26:49.800 --> 00:26:52.100  it gonna tip into recession. Should we be concerned with 541 00:26:52.100 --> 00:26:55.700  what the FED is doing? Are they gonna go too far? My answer to you 542 00:26:55.700 --> 00:26:59.100  would be look recessions are not new with the 543 00:26:58.100 --> 00:27:00.300  we've experienced them. 544 00:27:01.500 --> 00:27:04.300 Over time in fact more frequently than 545 00:27:04.300 --> 00:27:07.200  you would think and yet in a vast majority of those 546 00:27:07.200 --> 00:27:10.100  recessions. If you just have the patience to ride through 547 00:27:10.100 --> 00:27:13.400  it you're rewarded on the back end of that to to 548 00:27:13.400 --> 00:27:16.300  the tune of sort of a healthy average annual Market return of 549 00:27:16.300 --> 00:27:16.800  almost 8% 550 00:27:17.200 --> 00:27:20.500 So going into 2023 expect volatility 551 00:27:20.500 --> 00:27:23.300  expect there to be things playing out in the headlines. Do not 552 00:27:23.300 --> 00:27:27.000  let that pull you away from the long-term 553 00:27:26.600 --> 00:27:29.800  discipline and know that the the 554 00:27:29.800 --> 00:27:33.200  rationale for why you're investing over 555 00:27:32.200 --> 00:27:36.400  the long term is sound and 556 00:27:35.400 --> 00:27:38.400  you have expectation that this too 557 00:27:38.400 --> 00:27:40.500  shall pass and I'll be rewarded for that patients. 558 00:27:41.300 --> 00:27:44.500 Yeah, absolutely discipline and patience tends to be the biggest Catalyst 559 00:27:44.500 --> 00:27:47.600  for rewards for investors over the long term and going 560 00:27:47.600 --> 00:27:51.000  into 2023, you know investors who might be uneasy 561 00:27:50.500 --> 00:27:54.000  unable to sleep at night concerned about their portfolios. 562 00:27:53.300 --> 00:27:56.500  They should go meet with their financial advisor. 563 00:27:56.500 --> 00:27:59.500  Make sure that their current asset allocation is aligned with 564 00:27:59.500 --> 00:28:02.200  their financial plan and their long-term goals 565 00:28:02.200 --> 00:28:06.100  and objectives and you know, I think staying 566 00:28:05.100 --> 00:28:09.300  the course and remaining disciplined makes the 567 00:28:08.300 --> 00:28:11.700  most sense but making 568 00:28:11.700 --> 00:28:14.500  sure that your portfolio is aligned with what you want to achieve with. 569 00:28:14.500 --> 00:28:17.500  Your hard-earned capital is something investors could 570 00:28:17.500 --> 00:28:20.600  be doing into 2023 and then expect your 571 00:28:20.600 --> 00:28:23.300  advisor say everything's gonna be fine unless there's 572 00:28:23.300 --> 00:28:27.200  some sort of life-changing event that happens with the 573 00:28:26.200 --> 00:28:29.700  investor not necessarily the markets 574 00:28:29.700 --> 00:28:32.100  Casey. Thank you so much for your insights today. 575 00:28:32.100 --> 00:28:35.100  It's always a pleasure. We love talking to you and 576 00:28:35.100 --> 00:28:38.000  we look to have you back over the next 577 00:28:38.200 --> 00:28:40.700  couple of podcasts and I want to thank all of our listeners out there. 578 00:28:41.100 --> 00:28:45.500 Joining us today. Please feel free to access other 579 00:28:45.500 --> 00:28:49.500  podcasts that we have done and they 580 00:28:48.500 --> 00:28:51.300  can be accessed anywhere you get your 581 00:28:51.300 --> 00:28:54.500  podcast. So thanks everyone and we will see you 582 00:28:54.500 --> 00:28:57.900  next time symmetry Partners LLC is an 583 00:28:57.900 --> 00:29:00.500  investment advisor firm registered with the Securities 584 00:29:00.500 --> 00:29:03.500  and Exchange Commission The Firm only transacts business 585 00:29:03.500 --> 00:29:06.400  in states where it is properly registered or 586 00:29:06.400 --> 00:29:09.900  excluded or Exempted from registration requirements 587 00:29:09.900 --> 00:29:12.700  registration of an investment advisor 588 00:29:12.700 --> 00:29:15.200  does not imply any specific level of skill or 589 00:29:15.200 --> 00:29:18.200  training and does not constitute an endorsement of 590 00:29:18.200 --> 00:29:21.200  the firm by the commission. No one should assume that 591 00:29:21.200 --> 00:29:24.900  future performance of any specific investment investment strategy 592 00:29:24.900 --> 00:29:27.800  product or non-investment related 593 00:29:27.800 --> 00:29:30.600  content made reference to directly or indirectly in 594 00:29:30.600 --> 00:29:32.700  this material will be profitable. 595 00:29:33.700 --> 00:29:36.200 As with any investment strategy there is the 596 00:29:36.200 --> 00:29:39.800  possibility of profitability as well as loss due 597 00:29:39.800 --> 00:29:42.500  to various factors including changing market 598 00:29:42.500 --> 00:29:44.900  conditions and/or applicable laws. 599 00:29:45.600 --> 00:29:48.800 The content may not be reflective of current opinions 600 00:29:48.800 --> 00:29:51.900  or positions. Please note the material 601 00:29:51.900 --> 00:29:54.300  is provided for educational and background use 602 00:29:54.300 --> 00:29:57.800  only moreover. You should not assume that any discussion or 603 00:29:57.800 --> 00:30:01.100  information contained in this material Services the 604 00:30:00.100 --> 00:30:03.500  receipt of or as a substitute for 605 00:30:03.500 --> 00:30:05.900  personalized investment advice.

The United Nations Security Council has extended an arms embargo on Somalia, in a bid to stem the growing threat posed by the Al Shabab militant group. The embargo has been in affect for 30 years since the country has plunged into civil. But a few countries were exempt from ban on weapon sales to Somalia. The US, UK, EU and Turkiye, will still be allowed to provide military support to the UN recognized government in Mogadishu. On Sunday, at least four people were killed after militants seized a hotel in Mogadishu. Al Shabab later claimed responsibility for the attack. Somalia's president, who took office in May, has vowed to wage a total war against the militant group. Guests: Federico Donelli Assistant Professor at University of Trieste Elem Eyrice Tepeciklioglu Author and Political Analyst

Delivered by Patricia Mariska Krisnawati Senjaya from St. Albert the Great Church, Archdiocese of Jakarta, Indonesia. Romans 10: 9-18; Rs psalm 19: 2-3.4-5; Matthew 4: 18-22 EXEMPTED, BUT CHOSEN Our meditation today has the theme: Exempted, but Chosen. We all have experiences of being excluded or exempted. There was someone who might have been treated in that way, but in fact he or she was very important and chosen. People love to see and count money in their wallets. They do not pay attention or ignore on the coins kept in their bags. It was only when they want to pay for something with coins then they realize that the coins are important. Many people work behind the scenes. They don't appear, don't show up, don't even go here and there, but their roles are very important. Without them, work matters and the process of running a dynamic work will not go well. Saint Andrew, one of the twelve apostles of Jesus whose feast day we celebrate today, is an example for us in this perspective. It was he who brought his brother, the apostole Peter, to meet Jesus at the time of the first calling of the apostles. Furthermore, Andrew no longer appeared at least in the whole story of the Gospel. Jesus always brought the first three apostles: Peter, James and John, among other things are the events like the healing miracle of the daughter of Jairus (Mk 5,37), the glorious appearance on Mount Tabor (Mk 9,2) and in the garden of Gethsemane (Mt 26,37). The apostle Andrew was not included or he was simply exempted. Our experiences being exempted or not included are so numerous. How does it feel to be the third out of the two chosen? Or when in line, you're number four out of the three needed? Or you have tried your hardest but only get to number five of the four positions available? Our reaction in general for these experiences would be anger, disappointment, hurt and even revenge. However, the apostle Andrew responded them with his faith, which was to consistenty follow Jesus to the end. He indeed left his family and job as a fisherman, in order to continue his calling to be an apostle and evangelist of Jesus Christ. He responded to the experience of being exempted with love. He did not appear in public, he was not in the list of names or in the calling of names and certainly was not recognized, but he really fulfilled the calling by going out to bring Jesus Christ to everyone. If you are now in the moments of being uncounted, not remembered, not invited, ignored, share those experiences with Jesus Christ, because from birth to His death, He experienced humiliation, abandonment, rejection and to the very end he was put to death. Respond to that experience with love, that is, with Christ in the sharing of love with others, even to those who make you sad and suffer. It will make you happy like Saint Andrew. Let's pray. In the name of the Father ... O merciful Father, make me a person who does not give up when ignored, but tries to share with Christ to forgive and continue to serve others. Glory to the Father and to the Son and to the Holy Spirit ... In the name of the Father ... --- Send in a voice message: https://anchor.fm/media-la-porta/message

Thursday 24 November 2022 Boom times for Qantas as the national carrier forecasts a strong Christmas with passengers happy to put up with sky high prices.  Also today: Electric vehicles exempted from fringe benefits tax, making them more affordable for many Australians NAB fraudster found guilty of 69 charges And the grocery battle heats up Plus don't miss the latest episode of How Do They Afford That? This week, it's all about side hustles. Subscribe: APPLE, SPOTIFY, or anywhere you listen to podcastsSupport the show: https://fearandgreed.com.au/all-episodesSee omnystudio.com/listener for privacy information.

#1463: Monday, September 19, 2022   #1463: Flagstaff's $16.80 minimum wage with Chris Rhode from City of FLG. Royal families exempted from inheritance taxes, while the little “subjects” must pay 40%! + Pandemic over, says Biden!   Mark Haughwout spends the first hour 0:00-43:19 (and runs the board!) discussing with Jeff... The Royal hoopla. Jeff wants a special feather hat so he can be exempt from inheritance taxes too The impacts of Flagstaffs highest in the state minimum wage  Biden conveniently, and weeks before the election, declares the pandemic is over.  Plus news polls show tight AZ governor and senate race.   Flagstaff minimum wage going to $16.80 by January 1, 2023! 43:20-62:10 CHRIS RHODE, Management Analyst with City of Flagstaff Office of Labor Standards discusses Flagstaff's upcoming increase in the minimum wage, enforcement, out of town workers, exclusions??? and more.   Olivia stops in to briefly discuss 62:11-74:06 her trip to Yellowstone including dumb tourists taking photos by Buffalo, and more.

Elizabeth Hovde of the Washington Policy Center expresses hope that the Employment Security Department has the ability to make this process make better sense. https://bit.ly/3KT7mRR #Opinion #Columns #Commentary #ElizabethHovde #WashingtonPolicyCenter #Workers #Exemptions #LongTermCarePayrollTax #EmploymentSecurityDepartment #WACaresFund #VancouverWa #ClarkCountyWa #ClarkCountyNews #ClarkCountyToday

Lamentations Chapter 1

Elizabeth Hovde of the Washington Policy Center provides an update from the Employment Security Department on exemption applications. https://bit.ly/3AtIkoZ #Opinion #Columns #Commentary #ElizabethHovde #WashingtonPolicyCenter #LongTermCareProgram #PayrollTax #W2Workers #WashingtonState #EmploymentSecurityDepartment #WACares #ExemptionNumbers #VancouverWa #ClarkCountyWa #ClarkCountyNews #ClarkCountyToday

Minister Anutin told a public forum on Friday that the Thailand Pass application could still be scrapped but health officials need more time to examine the test data in respect of incoming tourists. Friday's decision comes as Thailand continues to lag behind its regional peers in the recovery of the kingdom's foreign tourism industry prompting growing concerns that something may be wrong or that the critical foreign tourism industry may have suffered long term damage because of this emergency despite the Tourism Authority of Thailand (TAT) announcing revised projections for up to 8 million foreign tourist arrivals this year with 1 million arrivals to May 9th. https://www.thaiexaminer.com/thai-news-foreigners/2022/05/21/thailand-pass-retained-for-foreign-tourists/ Carla Boonkong reports from Bangkok.

3rd episode of the Ramadhaan Series made in 2020

This episode is also available as a blog post: http://donnyferguson.com/2020/07/15/seattle-just-passed-a-new-tax-on-jobs-in-the-middle-of-an-economic-crisis-but-exempted-government-workers/ --- Send in a voice message: https://anchor.fm/donny-ferguson/message

Why would a student-focused leader choose the word "ME" as her word of the year? Join us this week to find out, as SST8 consultants Debbie Theirl and Chris Ferrell catch up with Aireane Curtis, Superintendent of Windham Exempted Village Schools. She has held a wide range of educational consulting roles and leadership experiences in Northeast Ohio, which prepared her for her current position. In this episode, Aireane shares her thoughts on prioritizes district decisions, self care, and support network tips - her one treat that she can't resist! Co-Hosts: Debbie Theirl and Chris Ferrell, Educational Consultants Additional Resources Leadership Freak by Dan Rockwell (Blog) No Pain, No Gaines by Chip Gaines (Book | Audiobook) Off Balance by Matthew Kelly (Book | Audiobook)

 Podcast #15Investing, Minimum Wage and Pork Welcome back friends to In My Right Mind. I am Russ Andrews and am joined, as always, by the silver-tongued PJ Jaycox. Last week we spoke about El Rushbo and what he meant to us PJ. A listener and good friend of mine named Brad texted me to tell me he loves our show. But that he leaves our show in a pissed-off mood. Which is the exact opposite way that Rush left his listeners. Rush was the ultimate optimist…and so am I. But some of what the left is doing just drives me insane. And we are NOT Rush. There will never be another El Rushbo. BUT, we will endeavor to end the show on a positive note. Thanks Brad C!     The National Association of Realtors reported that homes put up for sale in January 2021 typically remained on the market for just 21 days, down from 43 days a year ago, according to CNN. Housing inventory stood at a record low of 1.04 million units at the end of January, down 26% from a year ago. The median sales price of existing homes rose to $303,900, up 14% from a year ago. FTP 2/23/21     The Federal Deposit Insurance Corporation (FDIC)announced that U.S. commercial banks and savings institutions insured by theFDIC reported aggregate net income totaling $59.9 billion in Q4'20, up $8.7billion (17.0%) from Q3'20 and up $5.0 billion (9.1%) from Q4'19, according toits own release.  The FDIC noted that net interest margin stood at an all-timelow of 2.68% in the quarter, no change from the previous quarter. The historical average is 3.55%. Community banks reported net income totaling $1.3billion in Q4'20, up 21.2% from Q4'19. PPP. The number of institutions on the FDIC'slist of "problem banks" stood at 56 in Q4'20. The post-crisis highfor the list was 888 in Q1'11. FTPortfolios 2/24/21       FIGHT FOR $15: From Forbes Two weeks ago we mentioned the minimum wage partner..and I claimed that many union contracts are tied…or are indexed to the minimum wage. I wanted to verify that statement, so I did some digging. Apparently, there at least 2 ways unions profit from minimum wage increases. The first is that so many union contracts are INDEED indexed to the minimum wage   Traditionally, unions have supported minimum wage initiatives because their contracts have been directly or indirectly tied to the minimum wage. For instance, a UNITE contract that covered workers in Pennsylvania, Ohio, and South Jersey said the following: "Whenever the federal legal minimum wage is increased, minimum wage [in the agreement] shall be increased so that each will be at least fifteen (15%) percent higher than such legal minimum wage.”   Contracts for Cal Fire Local 2881, which represents 6,000 California firefighters, and UFCW Local 1099's agreement with CVS have had similar stipulations. Other contracts, such as those signed by Retail, Wholesale, & Chain Store Food Employees Union Local 338 and UFCW 1262, also stipulated that minimum wage increases trigger an automatic return to the bargaining table, where new -- usually higher -- compensation is negotiated. The WSJ reported back in 2013 that the United Food and Commercial Workers International Union says that pegging its wages to the federal minimum is commonplace. The second way unions profit from minimum wages increases is that often times union jobs are actually EXEMPTED from minimum wage laws to make their lower paid workers more competetive vs non-union, min wage workers. The Forbes article detailed that in LA, Sheraton Universal Hotel employees, which are unionized, were paid California's minimum wage of $10, but at the Hilton Hotel across the street non-unionized employees made $15.37 under the city's hotel minimum wage law, making the union jobs the go-to choice for employers. Why do democrats support higher minimum wages that increase labor costs, but benefit...

117. Labour to be Blessed

Nancy Aichholz Indian Hills Schools

An online “junk yard” for UAVs and components, the drone pilot shortage, a UAS detect and avoid display project, UAV airspace integration in the UK, the US Senate version of FAA reauthorization, egg drop drones, LiPo batteries, and the CRACUNS submersible drone. News This Online ‘Drone Junk Yard' Lets UAV Owners Swap and Exchange Parts UK Drone builder Andrew Spaxman founded Drone Junk Yard in January 2015 as a place where enthusiasts could buy, swap, and sell unwanted UAV parts. Starting with a closed, country-specific Facebook group for the UK, Spaxman has expanded to groups for the United States, the EU, Canada, and Australia. UAV pilot training struggles continue The U.S. Government Accountability Office (GAO) released a report titled, Unmanned Aerial Systems, Further Actions Needed to Fully Address Air Force and Army Pilot Workforce Challenges [PDF]. In it, the GAO says the USAF and US Army haven't implemented all the recommendations made in its 2014 report. These particularly relate to the shortage of pilot instructors and pilots. FAA hand picks Horsham pilots to help refine UAS detection display The FAA wants to develop a UAS detect and avoid display for unmanned aircraft systems at the FAA William J. Hughes Technical Center, in Atlantic City, New Jersey. Eight pilot volunteers have been selected from the 111th Attack Wing for the project. FAA Civil Aerospace Medical Institute research psychologist Kevin Williams said,"Our task in this study is to look at the displays used to provide the pilot with the information that is required for them to remain well clear of other aircraft. Basically, what we're talking about is the minimum information requirements for those displays." UK calls for realistic approach to UAV integration The UK wants to permit beyond line of sight UAV operations at all altitudes by 2020, but the Department for Transport (DfT) wants to be sure that regulations are robust and realistic. Paul Cremin, head of UK aviation operational safety and emerging technologies at the DfT said, “This is a disruptive technology changing the way we think about aviation, but we have to be realistic about safety and security.” In conversations with the public, the dFt found that there is faith in state-controlled UAVs, confidence in most commercial operators, and concern about drone hobbyists. The public expects registration, geo-fencing, age restrictions on use, mandatory insurance, and licensing of retailers. A full report on the dialogue with the public is to be issued in April, followed by public consultation in June, leading to a UK government strategy on permitting operations later this decade. Senate bill calls for certification of unmanned aircraft The U.S Senate version of the FAA Reauthorization Act of 2016 would establish a kind of “type certification” for UAVs, requiring all small UAS to meet design and production standards within one year. Manufacturers would have to certify compliance. Random production samples would be tested, and manufacturers would provide a sample of the UAV to the FAA for review. The Senate version also calls for: An "aeronautical knowledge and safety test" for operators (including model aircraft pilots). Exempted would be aircraft under .55 pounds, and pilots under 13 years of age who fly under the supervision of an adult who has passed the test. FAA to create within 2 years a new operating certificate for unmanned aircraft package delivery operators. Nine months for the FAA to establish a rule for micro UAS (under two kilograms, or 4.4 pounds) with no pilot's certificate requirement Nine months to develop standards for UAS operations by institutions of "higher education." If the FAA misses the deadline, the institutions can operate as model aircraft. Drones to drop Easter eggs on Cherry Hill The Impacting Your World Christian Center plans to host Egg Drone Drop events for kids in Cherry Hill and Philadelphia.