[SPEAKER_02]: On radio, on YouTube, streaming live on investtalk.com and for our podcast subscribers, this is Invest Talk.

[SPEAKER_02]: Independent Thinking, shared success.

[SPEAKER_02]: Invest Talk is made possible by KPP Financial, a registered investment advisor firm serving clients throughout the United States.

[SPEAKER_02]: Here is KPP Financial Portfolio Manager, Luke Guerrero.

[SPEAKER_01]: Good afternoon fellow investors and welcome back to invest talk.

[SPEAKER_01]: My name is Luke Guerrero and today's Monday, September 22nd, 2025.

[SPEAKER_01]: Now, if you are a good at math or really if you just look at a calendar, you're well aware, there are only six trading days remaining in this quarter.

[SPEAKER_01]: So, if I said to say,

[SPEAKER_01]: The fourth quarter is coming upon us pretty quickly, which means before you know it, it'll be 2026, and so with regards to the stock market and your report folios, now is not the time to lose focus.

[SPEAKER_01]: They're here to invest talk.

[SPEAKER_01]: Just so that I have one mission.

[SPEAKER_01]: And that is that each and every day, you leave this show a better and more informed investor.

[SPEAKER_01]: We want to help you understand the market dynamics, what is going on, and most importantly, how all of those things might affect your portfolio, and therefore your financial lives.

[SPEAKER_01]: Now in order to do that, we have a bit of a recipe that we adhere to on this show.

[SPEAKER_01]: We have the common ingredients, our main focus point, our talking points, we go over the market.

[SPEAKER_01]: But the thing that really spices up this show is you, your finance and investment questions, the a voicemail, calling through live, or leaving them over on our YouTube channel.

[SPEAKER_01]: Now, just a bit, I'm gonna talk about today's market performance and run down those show topics, but first let's tackle this color question.

[SPEAKER_05]: Hey guys, I was just wondering how you guys think about the stock RR rich tech robotics incorporated looks like their stocks been doing really good these past three months up about looks like a hundred ninety percent.

[SPEAKER_05]: Give me a update, and we see if this is a good stock investing.

[SPEAKER_05]: Thank you.

[SPEAKER_05]: Right.

[SPEAKER_01]: Taking a look at RR, which is a rich tech robotics.

[SPEAKER_01]: It is, you guessed it, a robotics technology company.

[SPEAKER_01]: It has a bit of a wide array of types of industries where it offers robotic automations.

[SPEAKER_01]: It has its server assistant robots, so technology has hospital delivery robots, so the medical space.

[SPEAKER_01]: It is heavy, a duty, internal transport through the Titan segment, so you're talking about your industrial space, those of Skylarke for hotel, as well, as well as the development of some cleaning robots.

[SPEAKER_01]: Now, over the past three months, this stock has been on quite a run up 29.5% up 623% in the

[SPEAKER_01]: I have a hundred and five percent year to date.

[SPEAKER_01]: It is now a seven hundred three million dollar market cap company.

[SPEAKER_01]: It has a little bit of debt, 356 million dollars worth of debt, but you know what?

[SPEAKER_01]: It's revenue is growing, but it is still a negative money prospect, right?

[SPEAKER_01]: It's not making any money.

[SPEAKER_01]: It's net margin this year projected to be minus three hundred and

[SPEAKER_01]: It's name included in a couple of indices, Russell 2000, Russell 3000, obviously systematic buying is going to happen from there.

[SPEAKER_01]: They have a $4 million agreement that's million with an M, not billion with a B, to expand its reach to the Asian market over the past six months, you have seen high volatility, you have seen a bit of climb and revenue that is

[SPEAKER_01]: You know, relatively, you're not a bit of a climate revenue, but a bit of revenue, which is, you know, still further off from where they were in 2023 down from 8.7 billion to 4.2 billion in at 2024.

[SPEAKER_01]: And so at the same time, something that maybe you should be concerned about as well, they are seeing, yes, a climate stock price.

[SPEAKER_01]: What do smart companies that...

[SPEAKER_01]: Don't have profits do in times like these that issue shares in this company has done that as well.

[SPEAKER_01]: So, you know, taking a look at this, you've got to be worried about the dilution if you are an investor.

[SPEAKER_01]: It's not, it's trading in a pretty crazy expensive multiple to 131 times price to forward looking earnings.

[SPEAKER_01]: So what are you going to watch for going forward?

[SPEAKER_01]: Well, the next earnings report is in December.

[SPEAKER_01]: Can they continue to grow revenue in terms of their projection, right?

[SPEAKER_01]: Even though they fell from 2023, I already projected to grow into 2024, our margins going to become more reasonable.

[SPEAKER_01]: And overall, what is the competition space like?

[SPEAKER_01]: Now for me,

[SPEAKER_01]: As a long-term investor, somebody who tends to stay away from the companies that don't make money, because historically speaking in aggregate those tend to underperform, I would probably stay away from Rich Tech Robotics in spite of this run-up you've seen.

[SPEAKER_01]: That is Rich Tech Robotics, ticker RR, thanks for the call.

[SPEAKER_01]: It's like we've our first live call of the week from our friend George and San Mateo, listening on AM 12 of 20.

[SPEAKER_01]: Yeah, so a B.K.L.C.D.

[SPEAKER_01]: owner, you look into Biden.

[SPEAKER_08]: I'm looking to buy it.

[SPEAKER_08]: Just to put things in context, I'm a passive index fund investor.

[SPEAKER_08]: Okay, and I've been looking, I just, I found that ETF earlier this year, and it seemed like a dream come true.

[SPEAKER_08]: It, it's zero expense ratio.

[SPEAKER_08]: You get quarterly dividends.

[SPEAKER_08]: And it's just the generic large cap index fund, and that's, that's what I really like.

[SPEAKER_08]: So I was wondering if you see any flags or any issues with it.

[SPEAKER_01]: Well, let's take a look at it now.

[SPEAKER_01]: BKLC is the BNY melon US large cap equity ETF.

[SPEAKER_01]: As expected, you're looking at your market capitalization, 99.58% of the fund is

[SPEAKER_01]: in large caps, which is exactly what there is supposed to be.

[SPEAKER_01]: Now, it does say there is a 0% expense ratio, and that is true BKLC has generally has a 0% expense ratio.

[SPEAKER_01]: You know, interestingly enough, sometimes what you see is something called a fee waiver, right?

[SPEAKER_01]: And so the prospectus ratio will be x percentages, x basis points, and there'll be a temporary fee waiver.

[SPEAKER_01]: Now, this isn't exactly what is happening here, right?

[SPEAKER_01]: There's no temporary promotion, no waiver.

[SPEAKER_01]: Now, is it a loss leader, probably?

[SPEAKER_01]: Kind of like this Costco, which is three chickens, it gets you in the door.

[SPEAKER_01]: You get into your suite of B&Y, you know, melon funds.

[SPEAKER_01]: Now, your passive investor doesn't mean you're going to start only investing in B&Y, you know, core equity ETFs.

[SPEAKER_01]: Now, but if you're trying to get large cap exposure, I mean it's a $4 billion fund.

[SPEAKER_01]: It's sector waiting is pretty closely tracking the MSCI USA large cap index, so it's

[SPEAKER_01]: is yield is about the same, it's price to book looks about the same.

[SPEAKER_01]: Everything looks like it's doing a good job tracking this.

[SPEAKER_01]: Now, let me just do a little quick read here and see how they decide what's in here.

[SPEAKER_01]: It looks like it tracks it index of the top 500 corporations initially.

[SPEAKER_01]: Yeah, I mean, it looks like it's pretty much just doing it based on market cap here, free full market cap, they're not doing anything crazy here.

[SPEAKER_01]: Honestly, it looks to me like if you trying to get large cap exposure and you want to do it for zero expense ratio in an ETF, pretty solid way to do it, not seeing a lot of red flags here.

[SPEAKER_01]: Thanks for the call, George, have a wonderful Monday.

[SPEAKER_01]: Now, we're moving to New Break.

[SPEAKER_01]: On the other side, we'll preview today's topics and look at today's market activity.

[SPEAKER_01]: Be like George, give me a call at 88899 chart.

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[SPEAKER_03]: How to identify AI opportunities across sectors.

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[SPEAKER_03]: They'll be talking about the energy grid, data center infrastructure, and how AI is boosting profits in a wide range of industries.

[SPEAKER_03]: The All-New Investalk Wealth webinar, happening online, September 30th from 1 to 2pm Pacific Time.

[SPEAKER_03]: Seats are limited, so register now at Investalk.com.

[SPEAKER_03]: There's value in every Invest Talk podcast.

[SPEAKER_03]: So call in Vestalk, 888-99 chart.

[SPEAKER_03]: The Invest Talk phone lines never close.

[SPEAKER_03]: And now Luke Guerrero is here, call in Vestalk 888-99 chart.

[SPEAKER_01]: We've got a lot of ground to cover in the next 45 minutes or so and there's a little bit of what we have a plan for you all today.

[SPEAKER_01]: My main focus point concerns this topic.

[SPEAKER_01]: The retirement generation gap, boomers versus Gen X. In this segment, we will break down the contrasting retirement strategies and financial mindsets of baby boomers and Gen X to uncover key lessons for your financial future.

[SPEAKER_01]: Also, we'll touch on how markets have hit, yet another record high, FOMO is everywhere.

[SPEAKER_01]: So what are the risks out there?

[SPEAKER_01]: What should you be cognizant of?

[SPEAKER_01]: We'll also touch on something.

[SPEAKER_01]: I tried to talk about twice last week, but we didn't have much time.

[SPEAKER_01]: A surge in imports into seven California ports, abruptly finishing as the pre-liberation day front running, seemingly has come to an end.

[SPEAKER_01]: Should we have time at the end of the show, a hot topic over the weekend, the $100,000 H1B visa fee, the administration saying it might help U.S.

[SPEAKER_01]: workers' economists are saying, we are not so sure about that, and should we have time, or we will have time, of course, to answer your findings and investment questions, including a one on essential PLC degree ACN, another on Roth IRAs, so also some questions that came in from the comment section of the

[SPEAKER_01]: So I got a little bit about the market today before we go any further into this program.

[SPEAKER_01]: U.S.

[SPEAKER_01]: stocks a bit higher and a near best levels, S&P Nasdaq Dow, extending those Friday record closes.

[SPEAKER_01]: We saw, well, so 2000 just below, it's last Thursday record close, which I think the first record close it had in quite some time, obviously, on the back of rate cuts, cheaper debt financing that's going to primarily help out some of those smaller companies.

[SPEAKER_01]: From a sector perspective, big tech mixed Apple doing pretty well in video, the two standouts from that group, other outperformers, semis, biotech names, casual diners, cruise lines, rails, hospitals, managed care, and utilities, underperformers on the day included home builders, airlines, hotels, casinos, department stores, credit cards, and regional banks.

[SPEAKER_01]: The bond side treasury is looking a bit weaker, touch of curve flattening out there.

[SPEAKER_01]: The yields up about two to four basis points across that duration spectrum across the curve.

[SPEAKER_01]: At the same time dollar index down 30 basis points on the day gold finishing it yet another record close of nearly 2% at 1.9% today.

[SPEAKER_01]: In crude oil, ended down about 20 basis points.

[SPEAKER_01]: So what really inspired yet another strong day?

[SPEAKER_01]: Well, we're seeing a bit of pick-up in M&A activities, certainly a good, good for financials, good for markets, broadly, that AI-secular narrative, very much still intact.

[SPEAKER_01]: We got a notice that in video, is going to invest up to $100 billion in open AI to boot boost some of their database investments.

[SPEAKER_01]: We also see, you know, a bit of tailwinds from Fed easing, continually avoiding recession to stronger than expected US economy.

[SPEAKER_01]: And positioning at sentiment really does support a bit of further upside we're seeing the rally broad in, broad in as well.

[SPEAKER_01]: Market still continuing to ignore the elevated risk of a government shut down and some geopolitical tensions that are rising, but they're still a bit of caution out there, right?

[SPEAKER_01]: You're seeing divergent Fed expectations, a lot of moving pieces around H1B visa fees, what that might do to tech companies, what that might do to medical companies, and overall, you know, a little bit of caution.

[SPEAKER_01]: We're approaching quarter end.

[SPEAKER_01]: We're approaching a part of a part of September that historically has not done particularly, well, a part of the year where things start to slow down.

[SPEAKER_01]: There's a growing focus on a more aggressive rate cut path that if that'll even happen, as well as the lagged impact of tariffs, which we're likely to start to feel closer towards the end of the year.

[SPEAKER_01]: Now, on the macro side, no major economic data releases really scheduled for today.

[SPEAKER_01]: Tuesday brings the S&P Global U.S.

[SPEAKER_01]: Flash Manufacturing and Services PMIs, along with comments from Fed's Bowman and Bostick.

[SPEAKER_01]: I'm also going to get Fed, Chair Jerome Powell to speak on the economic outlook at the greater Providence Chamber of Commerce, just past noon Eastern tomorrow.

[SPEAKER_01]: New home sales.

[SPEAKER_01]: And what else happening to my new home sales out on a Wednesday more fed speak on Wednesday as well Thursday brings trade balances wholesale inventories and the third release of Q2 GDP durable good orders claims and existing home sales and personal consumption index and spending report the highlight on Friday with the focus of being on PCE inflation as well as the final university of Michigan consumer sentiment for September also will be on the calendar some more fed speakers big week for fed speak this week.

[SPEAKER_01]: Now, you might not have time to fully answer this question, but we can at least give it a little bit of a start.

[SPEAKER_01]: And this question comes in from SSJ Baller from our YouTube comments section question bank.

[SPEAKER_01]: Because in every day, now we receive questions and comments.

[SPEAKER_01]: Over there on our YouTube channel where we offer unique content, not just what we give you on this podcast, broken apart into a different form, but lessons.

[SPEAKER_01]: Green, you know, evergreen lessons on finance, on personal finance, on investing.

[SPEAKER_01]: webinars, all sorts of videos and while you're over there, if you have a question, you can certainly leave it in the comment section of our question bank or comment section of any of those videos and we'll pick it up.

[SPEAKER_01]: This one about KGC and SSR payments.

[SPEAKER_01]: Thanks for all of these informative videos.

[SPEAKER_01]: What are your thoughts on KGC and SSRM, and they still basically value, even though they run up appreciate the assessment?

[SPEAKER_01]: Let's look at what these companies are before we had to break.

[SPEAKER_01]: Then we'll answer this question once we get back.

[SPEAKER_01]: KGC capital LLC is the drum roll please as my internet is being a little slow.

[SPEAKER_01]: It is a venture capital firm founded in, it looks like a private firm.

[SPEAKER_01]: So let's take a look at actually at the other one first, SSRM.

[SPEAKER_01]: SSRMs, SSR mining, precious metals, a gold company, assets all over the place and an interesting thing given how gold has run up.

[SPEAKER_01]: So we'll talk about these two companies.

[SPEAKER_01]: What might be right for this commenter?

[SPEAKER_01]: What might an interesting company for you to look at?

[SPEAKER_01]: Remember to do breaks to come.

[SPEAKER_01]: My main focus point in more answers to your questions and hopefully some more live calls.

[SPEAKER_01]: 8-8-99 chart is the number.

[SPEAKER_01]: Can't wait to hear from you.

[SPEAKER_03]: Twenty twenty five rolls on and you might have some fresh questions for Justin or Luke.

[SPEAKER_03]: Call in Vestock 888 99 chart.

[SPEAKER_01]: Now, for the break, when you're talking about a KGC and SSRM, I look at the wrong KGC, but you know what?

[SPEAKER_01]: I found the right one, and the question makes sense now, because KGC is King Ross's gold corporation, so just like SSRM involved in the precious metals mining space.

[SPEAKER_01]: So, let's take a look at these two companies.

[SPEAKER_01]: Well, they're really different on size.

[SPEAKER_01]: KGC 28.5 billion SSRM, 4.6 billion,

[SPEAKER_01]: earnings about 3.8 billion to 349 million.

[SPEAKER_01]: So they definitely differ on size here.

[SPEAKER_01]: The larger one also has a bit of a lower price to earnings, about 18 and a half times for looking price to earnings, 11.1 billion in cash and 1.2 billion debt.

[SPEAKER_01]: So net cash practically zero.

[SPEAKER_01]: On the other hand, the other name has net cash practically zero as well, 438 million versus debt of

[SPEAKER_01]: 350, 7 million.

[SPEAKER_01]: They're all the both up consistently, you're today.

[SPEAKER_01]: Pretty big.

[SPEAKER_01]: KGC of 155% SSRM of 215%.

[SPEAKER_01]: And so the question becomes, you know, where might you want to choose between these two names?

[SPEAKER_01]: What is smaller?

[SPEAKER_01]: One is smaller scale.

[SPEAKER_01]: One has specific assets with a lot of upside they've been acquiring things recently.

[SPEAKER_01]: That's SSRM, a lot of growth potential.

[SPEAKER_01]: The other is larger.

[SPEAKER_01]: It has more scale, more minds, larger production base, a more diversified

[SPEAKER_01]: operation.

[SPEAKER_01]: It comes down to what you are really looking for.

[SPEAKER_01]: If you're looking for stability, you prefer a low-risk, more stability, somewhat cheaper valuation, still great returns.

[SPEAKER_01]: Probably going to want to go with a larger company, KGC.

[SPEAKER_01]: If you want to have a little bit more risk in your portfolio, potentially higher returns.

[SPEAKER_01]: You expect gold prices to stay high and increase dramatically, which they very well may give in the conditions that we have out there in the market and what has been driving them thus far?

[SPEAKER_01]: Well, then SSRM would be a good place to go because of its gross strategy, because of its acquisitions, because it likely has a bit more upside.

[SPEAKER_01]: Either way, both companies seem like a decent way to play the gold trend, and certainly gold has been trending ever higher.

[SPEAKER_01]: That's not a little bit about retirement, namely the retirement gap and how boomers are differing a bit from what we rather what we saw with boomers is differing a bit from what we are seeing with Gen X. Now, nobody likes to hear, sorry about this, that they're becoming their parents, but Gen X may be inheriting habits without copying baby boomers retirement playbook.

[SPEAKER_01]: Enter the workforce with pensions, stability, while contrast that with Gen X, which is about 65 million people, a big shift away from defined benefit plans to define contribution plans your 401k's, taking on a bit more debt, a bit more volatility in markets when they enter the workforce.

[SPEAKER_01]: And so this is a pretty big structural shift.

[SPEAKER_01]: And that's left Gen X with more responsibility for saving themselves, I often less confidence, therefore, that they'll be able to spend into their retirement.

[SPEAKER_01]: And that's not just me saying this, right?

[SPEAKER_01]: Surveys are backing this up only 60%.

[SPEAKER_01]: 60% of Gen X feels on track in 63% fear they will outlive their savings.

[SPEAKER_01]: What was that for boomers?

[SPEAKER_01]: About 68% of boomers who felt confident.

[SPEAKER_01]: That doesn't sound like much of a difference.

[SPEAKER_01]: It's only a percent, but there's a pretty big change.

[SPEAKER_01]: That's over a 10% difference on a relative basis.

[SPEAKER_01]: And the mindset is a bit different.

[SPEAKER_01]: Two, Gen X is more do it yourself, researching online using robot advisors.

[SPEAKER_01]: Well, boomers, more lean towards trusting advisors or friends with managing their assets.

[SPEAKER_01]: Now what can explain this?

[SPEAKER_01]: While there's a big technological divide, certainly Gen X embraced E-Trade, robot advisors, early Robin Hood, invest in your phone.

[SPEAKER_01]: Boomers, though.

[SPEAKER_01]: Primarily getting access through traditional channels.

[SPEAKER_01]: Now when it comes to social security, boomers remain a bit more optimistic that it'll last in their lifetimes.

[SPEAKER_01]: But they've got a long way to go with your in Gen X, right?

[SPEAKER_01]: Gen X doubts it.

[SPEAKER_01]: which ironically pushes them to save a bit more.

[SPEAKER_01]: Now when it comes to investing, Jenx, interestingly enough, even though they have more time, is the more conservative cohort that keep larger cash balances, and they plan a bit more cautiously.

[SPEAKER_01]: Boomers meanwhile have benefited from strong market returns, housing appreciation, low debt, and that has left them more willing to spend now.

[SPEAKER_01]: The bull generations like the idea of a phased retirement, though, for different reasons, but where's they want the flexibility?

[SPEAKER_01]: Gen X needs a bit more income, both of them thinking that they will look work far beyond that age of 65.

[SPEAKER_01]: And so the sandwich generation dynamic weighs pretty heavily on Gen X as it stands, they're bouncing care for kids.

[SPEAKER_01]: But they're also balancing the care for their aging parents, a large group with a large amount of wealth while trying to save for their own financial future.

[SPEAKER_01]: In the end, right, both groups want the same thing.

[SPEAKER_01]: Everybody wants the same thing.

[SPEAKER_01]: Being able to rely on your own financial self, being healthy, having not just a happy retirement, but a long retirement, but all of those things include costs.

[SPEAKER_01]: And given the dynamics that have affected each generation, what they grew up in, what the world looked like, what market returns, or how expensive everything was and is now,

[SPEAKER_01]: The paths for those two generations and frankly for generations successive generations, Gen Y, Gen X, could not be more different.

[SPEAKER_01]: And we're going to do a quick break.

[SPEAKER_01]: Please remember, you can call any time.

[SPEAKER_01]: It doesn't have to be during the show.

[SPEAKER_01]: We are open 24, 7, and leave your questions on the Invest Huck voice bank, or over on our YouTube channel, or over on our iPhone, iPhone, iTunes, review page, or via email.

[SPEAKER_01]: And if you're listening on our live stream or possibly on AM 1220 in the Bay Area, give me a call now at 888-99 chart.

[SPEAKER_03]: The All-New Invest Talk Wealth Webinar, beyond the Mag 7, how to identify AI opportunities across sectors, join Justin and Luke as they talk about the energy grid, data center infrastructure, and how AI is boosting profits in a wide range of industries.

[SPEAKER_03]: The Invest Talk Wealth Webinar, September 30th,

[SPEAKER_03]: One to two p.m.

[SPEAKER_03]: Pacific Time.

[SPEAKER_03]: Online seats are limited, so register now at investalk.com.

[SPEAKER_00]: Hi, Invest Talk.

[SPEAKER_00]: I'm calling in with a question on a sensor.

[SPEAKER_00]: The symbol is A, C, N, and when it gets your opinion, what your thoughts are on the outlook, and wanted to see what would be a good entry point.

[SPEAKER_00]: So thanks for the show and I'll be missing for the answer.

[SPEAKER_01]: Accenture ACN is a global professional services company.

[SPEAKER_01]: They're a business consulting firm.

[SPEAKER_01]: A couple of friends that work pretty solid company overall from an employee perspective.

[SPEAKER_01]: It is a $149 billion market cap company, so very large, got about $8 billion in debt, so not overly levered there.

[SPEAKER_01]: The consistently buyback share is got a 2.4% dividend yield.

[SPEAKER_01]: Cashflow, which was flat for a couple years, started to trend upward and improve.

[SPEAKER_01]: And at the same time, valuations have come down quite a bit, sending it 17.3 times for looking earnings.

[SPEAKER_01]: about 2.2 times sales, about the new and their average over the past five years.

[SPEAKER_01]: For a revenue perspective, revenue growth has certainly slowed a little bit, right?

[SPEAKER_01]: They're averaging about 8.5% on any of those bases over the past five years, achieving slightly under that in that projection from 2024 to 2025, though, you know, from 2023 to 2024, they did barely grow at all.

[SPEAKER_01]: And so, you're to date their down 31% down almost 16% in the past three months down 28%.

[SPEAKER_01]: over the past 52 weeks and so what's really driving this performance is well yeah you're beating on revenue but bookings are continuing to decline your revenue growth is steady but it's certainly not improving as a bit of a lack of implementation of some of the initiative related to AI that they said they were going to start to implement in the past in the past year or so and

[SPEAKER_01]: One of their business is government-focused, and you've had some government spending headwinds.

[SPEAKER_01]: Now in spite of this, margins.

[SPEAKER_01]: Pretty stable, right, sitting at about 11.2% net margin, 17.7% EBITDA margins, supposed to expand again to about 19% EBITDA margin and 11.7% net margin respectively.

[SPEAKER_01]: So profitability, I mean, it's not really improving that much.

[SPEAKER_01]: So from a total return perspective, although returns have been bad, right?

[SPEAKER_01]: They're buying back shares, that's certainly good.

[SPEAKER_01]: But I think the reason why the stock is underperforming, it's industry by about 25% is because of that make-up,

[SPEAKER_01]: of business versus government contracts, how much growth has flown as a slow down and then also, you know, bookings declining overall.

[SPEAKER_01]: And so, it's not really much telling me that that's gonna turn around in the short and near terms.

[SPEAKER_01]: I think for now, I'd probably stay away.

[SPEAKER_01]: There's a clear downtrend heading back about 12 months becoming more and more evident through 2025.

[SPEAKER_01]: That is Accenture PLC, ticker ACN.

[SPEAKER_01]: Let's make a tune around.

[SPEAKER_01]: This question from 80 to 99 chart.

[SPEAKER_04]: I'm 25, just open to Roth IRA, Nardia, my own portfolio in TD Ameritrade made up about 30 different stocks.

[SPEAKER_04]: I wanted to know what you guys would recommend to the Roth IRA, whether I should go the same route and use the same percentages in my current portfolio, or if I should go a different route in Vestin ETF, such as MidCaps, SmallCap, value, or S&P 500,

[SPEAKER_04]: I also want to know if you guys would recommend contributing the max each year to the raw looking forward to hearing your answer.

[SPEAKER_01]: Great question.

[SPEAKER_01]: If you can, if you are in the income bracket that allows you to, a Roth IRA can be an excellent tool.

[SPEAKER_01]: Now, a traditional IRA, you are putting pre-tax dollars in, it grows tax-free, and then when you withdraw it later on, you pay taxes on it.

[SPEAKER_01]: Now, a Roth IRA, you put after tax money into a gross tax free, you are not tax when it comes out.

[SPEAKER_01]: Now, you may be saying, okay, that sounds great, that sounds much better.

[SPEAKER_01]: Now, that being said, math wise, if you have the exact same tax rate today, and in the future, there is,

[SPEAKER_01]: no difference in terms of what you return is going to be after taxes just because that's how math works.

[SPEAKER_01]: But if you anticipate having a higher tax read down the road, we're going to Roth IRA can be an excellent way to pay your taxes now, have it go tax free and not have to worry about it later on.

[SPEAKER_01]: Now the benefit of having both if you can and not everybody can, at least contribute without doing it back to a raw, is that, excuse me, is that you have

[SPEAKER_01]: In a Roth IRA, you can take out your contributions without penalty because they are after tax contributions.

[SPEAKER_01]: Whereas in a traditional IRA, you can not.

[SPEAKER_01]: And so you have that added ability.

[SPEAKER_01]: That's why it's always good to have different types of accounts you're raw through your traditional.

[SPEAKER_01]: Your brokerage account for that tax flexibility.

[SPEAKER_01]: And so if you can, contribute the max your Roth IRA absolutely.

[SPEAKER_01]: Should you be owning the same things in there?

[SPEAKER_01]: I would think of it as one whole portfolio between your traditional IRA and your Roth IRA.

[SPEAKER_01]: and the things that you can really benefit from, you know, being in a Roth IRA is

[SPEAKER_01]: Something that's going to grow more exponentially, more growthy names, given that when you withdraw it, you're not paying taxes.

[SPEAKER_01]: And think of all the things that you can benefit on not having to pay taxes down the road.

[SPEAKER_01]: And that's what you really want to allocate to your Roth.

[SPEAKER_01]: Well, the only things are allocated towards your traditional IRA.

[SPEAKER_01]: Now, what I own the exact same percentages in the exact same securities?

[SPEAKER_01]: Now, absolutely not.

[SPEAKER_01]: Again, what makes most sense from a tax perspective to put in one versus the other is a good way to think about it?

[SPEAKER_01]: Great question.

[SPEAKER_01]: Thanks for the call.

[SPEAKER_01]: Now, I don't have to tell you that once again, stocks are starting to surge to fresh records, right?

[SPEAKER_01]: The S&P 500 up more than 14% NASDAQ up more than 17% this year, even small caps are starting to join the rally.

[SPEAKER_01]: We're seeing a bit of breadth widening as the Fed starts to initiate its latest cuts.

[SPEAKER_01]: And while they continue to cut, who knows, nobody can predict.

[SPEAKER_01]: More likely than not, we can start to see some more easing, but either way, it's been a bit of a boon to the stock markets.

[SPEAKER_01]: Barwin costs, Rios companies, started to collapse as well, right?

[SPEAKER_01]: Investment grade spreads are actually below 0.8 percentage points.

[SPEAKER_01]: What does that mean?

[SPEAKER_01]: Well, that's the difference between your investment grade bond and the cost of a safer financing.

[SPEAKER_01]: And so that's very tight.

[SPEAKER_01]: Credit spreads are very tight.

[SPEAKER_01]: The tightest since 1998.

[SPEAKER_01]: And so, you know, there is essentially this thought out there that it's really, you've never been paid less to take on risk than you are now.

[SPEAKER_01]: As every asset class is priced in a way that that seems to be the case.

[SPEAKER_01]: And so the paradox is a bit, the glaring geopolitical risks are rising across the world.

[SPEAKER_01]: There's a trade war that is biting every now and then uncertainty about tariffs and put costs.

[SPEAKER_01]: Marks are really care.

[SPEAKER_01]: They're not care.

[SPEAKER_01]: They've been brushing aside the cracks and it's not just an American thing.

[SPEAKER_01]: It's not just US markets.

[SPEAKER_01]: The MSCI all country world indexed also at all time times.

[SPEAKER_01]: Emerging markets are outperforming after years of poor performance.

[SPEAKER_01]: In Europe, corporate borrowing costs have in some cases fallen below government debt.

[SPEAKER_01]: I don't know what else can tell you that valuations are a bit stretched and so there's a lot of people out there that are understandably uneasy, a lot of financial professionals who see these very tiny credit spreads and small caps at all time highs as pretty misdefined, given how volatile the U.S.

[SPEAKER_01]: economy has been, how some data over the past year with respect

[SPEAKER_01]: especially energy costs seem to be on the rise again.

[SPEAKER_01]: Now market concentration as another layer of risk here.

[SPEAKER_01]: A lot of what has driven markets higher your Nvidia's your alphabets has been one theme, AI, and a handful of giants are dominating the gains, leaving little room for air, right?

[SPEAKER_01]: If you have a broad market that is performing well, if you have a broad market performing well,

[SPEAKER_01]: because of many different themes that are driving, many different macro factors.

[SPEAKER_01]: If one of those failed in the market doesn't drop off as much, but if most of, and this has been the case, most of the gains have been concentrated in a handful of stocks, if what our perception is of AI changes, that could lead to dramatic, a dramatic pullback.

[SPEAKER_01]: And so you see these valuations as a bit extreme in some areas, not all areas, but some areas against a backdrop of slowing jobs, of sticky inflation, of frankly historic levels of concentration.

[SPEAKER_01]: So naturally, there are some comparisons to the dot com era.

[SPEAKER_01]: Today's environment, in a way, you know, this guy from GQG partners I saw called called the .com on steroids fueled by this AI Manion.

[SPEAKER_01]: Now what has really driven this and you saw it post-liberation day and you saw it in April, what has driven a lot of this is retail buying.

[SPEAKER_01]: It has never been easier for somebody to purchase stock.

[SPEAKER_01]: Retail buying, dip buying momentum, tear for preves, blockbuster tech earnings within this focused area.

[SPEAKER_01]: This is all really driven markets higher.

[SPEAKER_01]: So moving forward, it'll be interesting to see what happens relative to expectations.

[SPEAKER_01]: Futures markets are expecting four more cuts in the next year, four more cuts.

[SPEAKER_01]: If inflation starts to peak, if it starts to return rather, and the labor market

[SPEAKER_01]: We could manifest far fewer than four cuts.

[SPEAKER_01]: Remember, a few months or a few years ago, they thought they're going to be seven cuts.

[SPEAKER_01]: In 2025, didn't necessarily happen.

[SPEAKER_01]: So understanding that market pricing is an market price action is really predicated upon what happens versus what we expected to happen can hopefully help guide you at a time when valuation seem rather high.

[SPEAKER_01]: Let's go with another YouTube comment section question.

[SPEAKER_01]: This one on income ETFs.

[SPEAKER_01]: It says, how do you feel about income ETFs from NEO's funds?

[SPEAKER_01]: We're talking about QQQI, spy on all of these income funds.

[SPEAKER_01]: Well, let's look at one of these, and we'll just do spy on,

[SPEAKER_01]: Why is the Neo's S&P 500 income or high-income ETF?

[SPEAKER_01]: It is a $5 billion fund.

[SPEAKER_01]: Got about a 68 basis point expense ratio.

[SPEAKER_01]: What they do is they hold the individual stocks in the S&P 500.

[SPEAKER_01]: Then they do a call spread strategy.

[SPEAKER_01]: So what they're trying to do is generate high monthly income through not just the dividends from the stocks, but also the premium from selling those SPX call options.

[SPEAKER_01]: You know, we have a strategy that is similar.

[SPEAKER_01]: It's a covered call strategy.

[SPEAKER_01]: So we hold individual stocks.

[SPEAKER_01]: And then at the same time, we write calls on those stocks.

[SPEAKER_01]: You get that premium income.

[SPEAKER_01]: Effectively what that's going to do.

[SPEAKER_01]: It's going to cap your upside, right?

[SPEAKER_01]: Because if you've got a role that's cost rolling or you get that called away, you get the stock called away.

[SPEAKER_01]: But it's also going to protect you on the down side quite a bit, right?

[SPEAKER_01]: A lot of these covered call funds in 2022.

[SPEAKER_01]: Our strategy included it really well at a time when the market was down, double digits, and so this behavior can be good for two things, as a hedge against the downside, and also if you want income.

[SPEAKER_01]: Now, one of the unfortunate things here is tends to generate a bit of capital gains.

[SPEAKER_01]: And when you buy an ETF and do it, you don't necessarily have losses to offset some of these, right?

[SPEAKER_01]: We talked about this when we did our webinar on custom indexing, direct indexing, which is a strategy that we offer for our clients, is if you own an S&P 500 ETF and the S&P 500's up over 14% this year, not every stock in it is going to be up 14% this year.

[SPEAKER_01]: And so the benefit of doing a custom index direct indexing where you own the individual stocks or some of them in the S&P versus the ETF itself is that you can mimic that return.

[SPEAKER_01]: but then you can also get some of the losses because again, not all stocks within an index are gonna be positive in a given year.

[SPEAKER_01]: Similar thing here is you're getting a lot of tax implications without getting some of the tax benefits of having those individual holdings.

[SPEAKER_01]: And so when you're paying 60 basis points for an income fund where you're getting a lot of taxes thrown at you.

[SPEAKER_01]: I don't know, I've always been one of the opinion that if you're looking to do something like a covered call strategy, it's best to own the individual stocks in there rather than trying to do it on an ETF wide basis just because the tax implications can be a bit narrowly.

[SPEAKER_01]: But if you don't mind it, if you don't mind the taxes, certainly any of these funds are a good way to generate income, like I said, very similar to a covered call strategy.

[SPEAKER_01]: So I'm back to the University of the Voice Man for a question that came earlier from New York.

[SPEAKER_01]: Hey Justin, hey Luke, this is Bruce from New York.

[SPEAKER_06]: I hope you both are well.

[SPEAKER_06]: I was looking at something different and came across past D.A.L.S.

[SPEAKER_06]: which is the Pacer U.S.

[SPEAKER_06]: small cap cash cows.

[SPEAKER_06]: Please tell me what you think.

[SPEAKER_06]: Have a great day.

[SPEAKER_06]: Bye.

[SPEAKER_01]: Calf is very similar to another ETF which I think the ticker is is cows.

[SPEAKER_01]: Let me check real quick.

[SPEAKER_01]: Yeah, and they're both by Pacer.

[SPEAKER_01]: They are both cash, cow ETFs.

[SPEAKER_01]: Cow's is the large cap version, right?

[SPEAKER_01]: It's the Pacer 100.

[SPEAKER_01]: This is the small cap version.

[SPEAKER_01]: So what they do is they look at the small cap space and they use the S&P small cap 600 now.

[SPEAKER_01]: I could go for 30 minutes on index construction, but the highlighted the S&P 600, it's chosen by committee.

[SPEAKER_01]: So there are some names in there that are not necessarily small caps, but generally they do fit the small cap guidelines.

[SPEAKER_01]: Now, within there, what they're going to do is they're going to take a look at trailing 12-month-free cash flow yields.

[SPEAKER_01]: They're going to look at other profitability metrics as well, and they're just going to choose the stocks that are the highest in terms of cash.

[SPEAKER_01]: They are cash cows.

[SPEAKER_01]: Each name is going to be capped at 2%, so you see that a lot of names, you know, United Airlines, Expedia, Fox Corporation, nothing really higher than 2% I get about 198 holdings pretty well diversified.

[SPEAKER_01]: Your math tells you the top 10 must be around 20% and you are correct.

[SPEAKER_01]: But again, 13% large caps, 63% mid caps, 21% small caps, I like the idea of emphasizing

[SPEAKER_01]: This is not a small cap fund.

[SPEAKER_01]: This is not a small cap fund.

[SPEAKER_01]: Only 21% of it is in small cap.

[SPEAKER_01]: So if you want a more broad fund that tilts towards mid caps, that emphasizes cashflow, this is a good way to do it.

[SPEAKER_01]: If you're looking for a small cap fund, this is not that.

[SPEAKER_01]: That is CLF, CAF, pace of U.S.

[SPEAKER_01]: small cap cash cows ETF.

[SPEAKER_01]: This is Investock.

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[SPEAKER_07]: It is kind of one of your take on FIW.

[SPEAKER_07]: I'm looking to maybe add more to my position.

[SPEAKER_07]: I've read an article recently that actually water was one of the best

[SPEAKER_07]: sectors over the long haul that is non-tech.

[SPEAKER_07]: Like I said, this kind of wanted your take on it and in your opinion, I'm looking to add and is that a wise move.

[SPEAKER_07]: Thank you for taking the call.

[SPEAKER_07]: I enjoy listening to you.

[SPEAKER_01]: You know, I think this is the second call about FIW we've gotten.

[SPEAKER_01]: These are the past couple weeks.

[SPEAKER_01]: That is the first trust water ETF.

[SPEAKER_01]: FIW holds 36 of the largest U.S.

[SPEAKER_01]: listed water companies they rank it by market cap and weighed it equally within five tiers.

[SPEAKER_01]: Now it has about 37 holdings.

[SPEAKER_01]: The top 10% makes up about 40% of the portfolio.

[SPEAKER_01]: Through a market cap basis, it's about 50 50 large cap to mid caps.

[SPEAKER_01]: Overall, what it's doing is it's tracking the ISC clean edge water index, primarily looking at water infrastructure, purification and filtration, meters, pipelines, pumps, valves, answer, water services.

[SPEAKER_01]: And it's done pretty well, right?

[SPEAKER_01]: It's pretty solid returner over the past 10 years, 15.54% on an annualized.

[SPEAKER_01]: basis.

[SPEAKER_01]: There's a bit of regulatory policy tailwinds, new infrastructure from last year on funding aimed at water system treatment plants, interest rates.

[SPEAKER_01]: Hopefully coming down quite a bit means lower borrowing costs.

[SPEAKER_01]: At a time when over the past couple of years right, higher borrowing costs have put a little bit of a dampen on infrastructure projects.

[SPEAKER_01]: Now, performance overall probably driven by favorable sentiment around water infrastructure, regulatory support for water and wastewater solutions overall.

[SPEAKER_01]: Again, these companies have a history of doing well because water scarcity, environmental issues, climate change, all of these things have bolstered demand and spending in water infrastructure projects.

[SPEAKER_01]: And frankly, I don't see why going forward, that wouldn't be the case as well.

[SPEAKER_01]: Now, it's not all clean, no pun intended.

[SPEAKER_01]: It's not all easy.

[SPEAKER_01]: You know, this is a 51 basis point expense ratio.

[SPEAKER_01]: It's not doing much for you.

[SPEAKER_01]: It's nearly equal weight within these tiers.

[SPEAKER_01]: It gives you good midcap exposure, which I like.

[SPEAKER_01]: But valuations in this area are a bit elevated.

[SPEAKER_01]: Price is a book sitting about four times.

[SPEAKER_01]: Price is cash for about 19 times.

[SPEAKER_01]: Price is sales about 2.75 times.

[SPEAKER_01]: Some of these names that I'm seeing here do a little bit of elevation there.

[SPEAKER_01]: But, you know, you're to date.

[SPEAKER_01]: This fund's up 10.25% for a thematic fund, not too bad.

[SPEAKER_01]: Overall, I think it's a good theme.

[SPEAKER_01]: I think that generally speaking, the demand for water infrastructure is not going anywhere.

[SPEAKER_01]: So if you're looking to invest in it in a broad way, I think the first trust water ETF, do you some way to do it?

[SPEAKER_01]: But before we head off, I want to talk a little bit about a tariff driven cargo surge at America's busiest port, but it's kind of seems to end it down.

[SPEAKER_01]: August imports down 6.6% from July's record.

[SPEAKER_01]: That's after Los Angeles and Longley channeled nearly 945,000 containers in August.

[SPEAKER_01]: Still strong by historical standards, but off the peak July number of over a million.

[SPEAKER_01]: And the poor chief, or in the volumes, are likely to drop further into the fall of the peak of the peak is behind us.

[SPEAKER_01]: He says.

[SPEAKER_01]: And so this really is reflecting a bit of a whiplash, right?

[SPEAKER_01]: If you remember, Liberation Day, although the magnitude was not telegraphed, was telegraphed in what was going to happen.

[SPEAKER_01]: And so with rising tariffs, there was a bit of front running.

[SPEAKER_01]: The import surge that had of the deadline only to plunge in May when the US duties on China jumped to 135%.

[SPEAKER_01]: Now they rebounded a bit in summer as the administration cut those rates, but then new tariffs were imposed after that.

[SPEAKER_01]: And so now with uncertainty pretty high and consumer demand

[SPEAKER_01]: Importers are, once again, pulling back the National Retail Federation data confirms the roller coaster giant August, Sunnier, record national volumes, as businesses scrambled ahead of deadlines, but Alec turns a bit sharply lower here.

[SPEAKER_01]: And so for retailers in the supply chain, that means the frantic, tariff-driven searches may be giving way to a bit quieter and lighter holiday season.

[SPEAKER_01]: That concludes another episode of Invest Talk, Justin and I thank you for listening and encourage you to tell your friends and family members, but our free podcast downloads at Spotify and iTunes.

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