US-Russia Thaw Sparks Investor Optimism in Russian Markets
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On radio, on YouTube, streaming live on investtalk.com, and for our podcast subscribers, this is InvestTalk. Independent thinking, shared success. InvestTalk is made possible by KPP Financial, a registered investment advisor firm serving clients throughout the United States.

Here is KPP Financial Chief Executive Officer, Financial Advisor, Justin Klein.

good afternoon fellow investors and welcome back to invest talk this is our march 8th tuesday march 8th 2025 edition of investdoc and markets are moving consistently and in both directions and we are here to help guide you through the maze of data and i have some topics for today that will

you'll probably be shocked at, especially when it comes to market knowledge. This show is all about keeping you informed and keeping your mindset headed in the right direction so that you are more able to avoid the mistakes as well as capitalize on the opportunities, which there are many. Even in markets sell off like this, even the market's rough, there are still parts of the market that are coming along.

And so we're going to look at all of your questions today. And that's mainly our avenue for educating you is seeing what's on your mind. You do that by submitting questions via our best talk anytime listener line at 888-99-CHART or leaving a message over on our YouTube channel.

in the comments section or leaving us a five leaving us a review on on itunes and leaving your question there as well so there are many ways to get us questions and we will address them as soon as we can so that's what this show is really about giving you data perspective and answering your questions

Now I'm Justin Klein and we're going to touch on a lot for this hour. We also have the market madness first round today. So we'll look at the winners there. And it was an interesting one considering it was the new economy region. And we'll dig in to the winners and who's at the top of the leaderboard. And we also will talk about today's market performance in just a bit and run down the show topics. But as usual, we'll hit this first caller question now.

Hello, Justin or Luke. This is Lewis in Seattle. I've had CGI, checker code GIB on my watch list, and I was waiting for it to get down to 100. I was wondering, what is your impression on the company? And do you feel that this is a good entry point? Or do you feel it could go down more? I look forward to your answer. You guys have a good day. Bye. All right. Looking at GIB is the symbol. And the name of the company, though, is CGI.

CGI Inc. And it's a Canadian based IT service provider and operates here in North America and in Europe. And they have 90,000 employees. And what they do is they offer a broad portfolio of services such as consulting, system integration, application maintenance, and business process services. But it's the largest vertical market is the government, which contributes about a third of their total revenue. And that's one of the issues here. If you look at

cutting spending, you know, Elon was in the room with me, I would say you need to look at government contractors. And that's where the the most bloat, waste, fraud and abuse probably is happening within our spending of military and beyond. And so I think that is one of the reasons why this is down so dramatically. Now, it is that support right around this hundred level. OK,

Sorry, I'm trying to pull this up. There we go. G-I-B is a symbol. I put in G-B-I. G-I-B. There we go. So it is at support around this $100 level. Now, on a weekly chart, though, if I zoom out, it's starting to weaken. It looks toppy. And this move over the last few weeks is telling me more that I'd rather pass. I think there's just too much risk here. You already see earnings expected to drop 24% this year.

And those estimates for this year and next year continue to go down. And this year's earnings must be $5.80 at $100 stock. You're talking about a high teens multiple around 19. You know, that's not cheap. It's not egregiously expensive, but it's not cheap. And the trend in the stock is going lower. And revenue last quarter was only up 5%. A market slowdown from late 2023 was up in the low teens. So while you are at support, I think it's going to break it.

And I don't like the backdrop of what's happening with Doge, at least in context to this, right? Is what happens if you go in there and start to pick apart these government contracts? And, you know, a lot of them are cost plus models, which has poor incentives surrounding it. And, yeah, I just don't like the trends that we're seeing here. So I'm passing on CGI.

Now, just to let you know, we have kicked off our second annual InvestTalk Market Madness competition, and this gives participants a chance to win $1,000. And we had some big winners today, and let me go over that right now. So it was the new economy region. There were eight matchups and obviously eight winners. What was interesting is that

Only one of this eight actually was up today. And that was Privia Health. So they took on Synopsys. They did better. You had CrowdStrike beating out, sorry, Twilio beating out Alphabet. CrowdStrike beating out Enphase. You had On Semiconductors beating out SIVA.

you had tesla losing to iovance biotherapeutics you had palo alto networks beating arista networks then you had nvidia topping app loving and that was one that was a that was a winner out of futility because as they said at the top of the show invader to have a great day but app app loving was down nearly 10 on the day so

I think NVIDIA was down, what did I say, four and a half or something like that. So some interesting winners here. A theme that I'm seeing is smaller. The smaller names generally won. Outside of NVIDIA and CrowdStrike, I think all the other ones were smaller than their counterpart. I have to double check that. But that's what I'm gleaning here. And it shows you that it's not just about being up on a particular day. You can be down but still move on.

It's just about outperformance. So that was, those are the winners for today's first round of the second annual InvestTalk Market Madness competition. Now let's move on to the rest of the show. We have a lot of ground to cover, 45 minutes or so, and we'll cover as much as we can. Our main focus point is the U.S.-Russian potential ceasefire negotiation is thawing some Russian markets, Russian assets that are under sanctions. So

how realistic is it for those names to get continued boosts going forward we'll talk about that in addition is it better to know less when it comes to investing well there's some interesting data that's saying yeah actually knowing too much is not necessarily beneficial in some instances it can be detrimental so keeping it simple can be a better way to look at it in addition

How much money is in U.S. equities versus the rest of the world? I'm going to give you a sense of how much flows are already in the market. Is there additional flows available to go into U.S. equities or is naturally that money going to eventually flow out to other markets? So we'll look at that data. And then lastly, if we have time, how bad is consumer sentiment deteriorating? We'll look at that.

we also have other questions submitted via our voice bank and one is on the potential market correction the other is on ww granger and then we have some questions that came in via the con comment section over on youtube channel as well and of course most importantly are your questions your live calls at 888.99 chart now we're gonna head into a short break and on the other side i'll talk about today's market activity and then tackle more of your questions here on invest talk

Voice bank calls are very important.

but so are the spontaneous questions that come in during the InvestTalk live stream. Let's go take a live call. Chris from Maine looking at G-O-L-D. We asked for live calls and boy, did you respond. Jerry from Palo Alto asking about ticker S and listening on AM 1220. Tell your friends, live a little, live a little. Call InvestTalk.com.

Weekdays from 4 to 5 p.m. Pacific Time. I'll listen on the podcast and I thank you very much. 888-99-CHART.

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Now let's go take a look at the market today. It was another red day with a nice bounce into VIX expiration yesterday. And the sell-off today kind of showed that market structure was a factor in yesterday's bounce. Today was another sell-off, but once again, mainly concentrated in those big tech names. You had Invita down 3.4%, Meta down 3.7%, Tesla down 5.3%, Broadcom down 3%.

And those were the deep red names in today's market. Apple held at the best, only down 0.6%. But if you look at the rest of the market from finance sector to healthcare to energy, you had a lot of green and kind of stocks that are flat.

consumer staples definitely had a bit of a pullback so they were a bit overbought i think but that's where the other pocket of weakness was and maybe that's heading into tomorrow maybe taking some risk off the table that if on the fed meeting that there will be some sort of rate rise i think that's certainly uh in the cards potentially now this is a this is a market uh that's rotating it's rotating out of the names that were the winners

People that didn't want to take profits at the end of last year, they're taking profits now. You're also seeing the dollar weakening and a persistently weak dollar is good for harder assets, materials, energy, industrials, and worse for growth yearnames. Because what happens, a weaker dollar is actually net net positive for the economy. If the Trump administration wants to help reshore manufacturing, tariffs may help a little bit.

but you know what'll help a lot is a weaker dollar and you have to have that in conjunction with tariffs if you want any of this to work in any reasonable way and so it's not shocking that you're getting this weakness in the us dollar you're getting strength in the euro as it looks like european union is set to spend in order to jumpstart their economy to jumpstart their manufacturing and industrial base to build out defense capabilities and that is

helping that part of the world. And then you're also getting the odds of a rate cut or multiple rate cuts by year end increasing. And so that rate differential is dropping as well. So that is why you're getting this market rotation. And due to positioning being so heavily in the MAG7 more broadly, I think there's a lot more air out of this bubble to come out.

You do get a very similar 2022 type of environment. That's when the NASDAQ was down 33%. Now, are you going to get the major implosions like you did? Remember Meta kind of imploded back then and had a big, big bounce back. Could it be Tesla this time? That's the big implosion in the Meg 7 potentially. Now, one thing I am seeing, so I'm talking to friends of mine that own businesses that run hundreds of millions of dollars in revenue, physical products.

They've due to the tariffs, they've stopped hiring and they've cut their spending ads. So the fact that Meta is having this major reversal is not shocking to me because that's where they mainly spend right. Instagram, Facebook, I think Google as well. There's partial cuts there. So these are factors. Another fact, more factors that are driving a lot of these names downward, especially the Metas and videos and Tesla's of the world. Now we're heading into a quick break.

And on the other side, we'll get to my main focus point and more answers to your questions. But give me a call now at 888-99-CHART. InvestTalk. Your questions are free. The answers are unbiased. Justin Klein is here now. 888-99-CHART.

Now let's go take a live call. Ian from Ohio wants to talk about annuities. Hey, Justin, how you doing? Doing great.

So I'm looking for some guidance. So a little backstory, I'm about 37 years old and I just took a 403B and a 401K and rolled it into a rollover IRA. Now I have someone in my life that's a financial planner guiding me to put it into an athene annuity. New. So essentially it's just going to take the money for about six, huh? No, don't do it.

Don't do it. First off, you never want an annuity in an IRA. Never. A tax-deferred vehicle in a tax-deferred account doesn't make sense. And then annuities are terrible long-term investments. Now, if you want a fixed annuity in retirement to supplement Social Security and you want a guaranteed income and low risk, that's fine for a certain amount of people. But you said you're 39? Yeah.

37. 37. Okay. You're relatively young. You still have many, many, you know, multiple decades before you need to retire. And it's not going to be a, it's not going to look good. You know, I'm assuming he's looking at some sort of variable annuity, fixed index annuity. That's what he's trying to pitch you.

Yeah, so what it'll do is it'll take this lump sum of money that I've rolled into my rollover IRA, take it out, put it into this other account, and then they'll take this money and invest it into the S&P, the Russell 2000, and something that's an EFA, which actually I can't find that index anywhere. It's EFA. It's a foreign... It's a basically developed foreign markets index, one of the most popular. Now, you can do that. If you want to do that, you can do that. Guess what? Just go on...

You probably have an IRA at a broker right now. Where is that at? What is that? Fidelity, Schwab. I use E-Trade currently. E-Trade, okay. So you can go buy SPY, EFA, and what was the other one? Russell? Russell 2000? Yeah, Russell 2000. IWM. I guess a big selling point on it was that I've been sold as the...

is the downside protection of course that's what it's always 15 percent yeah that's what it always is right um but what you're giving up are massive amount of fees much higher than if you just go bought spy iwm and efa and you are giving up upside too there's upside caps on that as well so when you have really good years you don't get that as well so you know you know go look at a chart of equities over long term they're going to go up you know they're good inflation hedges etc

And so this person is selling you this because they want to make a commission. That's it. That's it. And if you want to go, if you want to execute this strategy, it's extremely simple to do yourself. There's no advisor you need. You just go and buy those ETFs in your E-Trade account. That's simple.

Yeah, I figured there was something more to it. That's why I wanted to call in and get some of your guidance. This is the first time calling, but I thank you very much for your recommendation. Yeah, no problem. I mean, I've been taught about annuities for a long time. Steve was in the industry for a long time. Not the annuity industry, but the insurance industry. Because remember, that's what annuities are. They're just complex insurance contracts.

And the devil's in the details. There's always these broad selling points that sound great. But when you dig into the details, the downside of annuities does not counter the small upside. Sorry, vice versa, however you want to say that. The pros do not outweigh the cons. Let's say that. Keep it simple. And then there's the liquidity part. You can't touch this. You can't sell it. You have to have...

some sort of fee in order to get out. You don't want that either. Let's go to Robert in Pleasanton looking at HSBC. Hey, Justin. Hey, I don't own this stock currently, but I was looking at it and a lot of the numbers look pretty good, but it's had quite a run and I'm just wondering if I missed the boat on this. Well, this is the interesting one. So this is Hong Kong Shanghai Bank Corporation. That's what HSBC stands for. And

This is I would imagine this is doing well because of what's going on in Russia and China. And the fact that this is a bank intermediary that has that has access to the SWIFT system. And, you know, they're doing well because they're willing to do business with those from, let's say, non allies of the U.S.

And so that's what you're playing here is that continuation of probably geopolitical strife, etc. Now, earnings are expected to continue to go up this year and next year. It's had a big run, but, you know, frankly, it's still at a high single digit B multiple. It's foreign exposure. I like that.

Frankly, it is overbought, but I honestly don't mind it. Could it have a pullback here? It's already started to have a little bit of gyration, popped out at 62, recently pulled back around 55.

Would it shock me to see this consolidate here for a little while? No. But I don't necessarily hate this exposure, especially if you're looking for foreign banks to invest in. This has the heft, has the diversity. Obviously, the Hong Kong connection as well as UK, it's actually headquartered in the UK. So, yeah, I don't mind HSBC. Thanks for the call.

On the next InvestTalk, we'll look into this story. How much are you paying for financial advice? It's essential that investors ask the right questions because understanding the true cost of financial advice can be pretty complex. We'll dig into that story tomorrow, but for now, I'm Justin Klein, and I'm ready to take your calls at 888-99-CHART.

Every investor is working to build a secure financial future. How they get there and when they get there, that depends on many factors. The more you learn about how the market works, the better your chances for success. So don't forget to call InvestTalk, 888-99-CHART.

Hello, Justin and Luke. This is Paolo, long time listener since 2020, actually, when we had a significant correction. And that's when I started investing. And later on, I came across your podcast, which has helped me a lot.

So right now we're seeing a significant correction and not similar to 2020 though, but there's also a lot of fear in the market right now. Personally, I feel it's potentially overblown and might represent a buying opportunity, especially in sectors like industrials that could benefit from the AI boom. And I've seen some of my holdings in these areas take a hit.

Importantly, I'm very comfortable with my current portfolio and would be happy to reinvest in almost all of the companies I'm already invested in. And given this, is it still a sound approach to maintain this consistent reinvestment strategy during this period of market volatility? Or should I be more cautious and hold back even if it means missing potential opportunities? I would like to get

get your thoughts on that question. As always, I love the show and I wish you all a good one. Thank you. Bye-bye. Well, congratulations on getting into the game, at least. There are a lot of people out there in 2020 that started their investment journey during that pandemic time. And I think broadly, that's been a good thing. Now,

With most novice investors, you start off with some challenges and making some mistakes. And I'm glad we were part of your educational journey and bringing you to where you are today, asking really poignant questions like you just did.

you know give you my sense of what uh i think the market will look like over the next 12 to 24 months i do think it's going to be a choppy period i said this going into the year that you have the back half of this year is the potential for liquidity to dry up because of corporate refinancing activity in the corporate bond market and it intensifies in in 2026.

So I think there's about $850 billion in refinancing this year, mainly in the back half of the year. And there's a trillion dollars in refinancing next year. Now, I won't get into the weeds in that, but basically when that refinancing happens, that takes liquidity out of the system. Now, this sell-off has happened despite us not getting to that point where corporate refinancing is a fever pitch. It took another catalyst, which is a White House that looks to be disrupting the system, the status quo.

And you can argue whether that's a good thing or a bad thing that's relevant to the market returns over the next year or two years. Bottom line is that that has economic impact. And when markets start to shift on that, it can exacerbate itself, especially when you are in an environment where there's a lot of people, especially those starting in 2020, that moved from just buying individual stocks or ETFs to options. And we have record option activity.

And that creates a lot of short-term flow dynamics around dealer makers and all of this that can push markets in both directions. It's reflexive. And so a lot of what this pullback is, is that. And you see that with how concentrated this is in the big names because those are the names that are being speculated on with options. It's not a coincidence that those are the ones that are getting the brunt of the sell-off.

but if you zoom out you look at breadth you know he's talking about breadth uh when the market's going up what's breadth is it good or bad but really you talk about it when it's going down and in a bear market a consistent bear market you typically get breadth to the downside where all sectors are struggling now that's not the case we're doing really well right now despite this pullback in the market relatively

Why? Because most of the sectors were overweight or not having the same drawdown as the Mag7. Now, could that widen out? Absolutely. That's just today. You're asking about going forward. My base case is this is more a choppy market. A lot of uncertainty, but a Fed and Treasury that are pivoting towards providing more liquidity to the market to counter the refinancing activity.

to counter a slowing economy due to consumer and corporate sentiment around doge and and tariffs is it going to be 2022 or sorry 2023 and 2024 probably not probably not going to be this nice trendy positive market but we just had a 10 pullback in the s p that is normal that is a normal amount of volatility for the indexes almost every year you get that type of drop even last year you had the

you had the uh yen carry shadow trade unwind in the summer and that was about a 10 drop year before that you had the silicon valley crisis in the spring i think that was maybe closer to 15 i don't remember but so far this is a garden variety sell-off in magnitude and we're not seeing that those signals that this is broad-based so could it turn

into something more like 2022 where the nasdaq goes down 33 this year in that range absolutely i see no reason why that can't happen but a lot depends on what you're buying you know uh i think there are plenty opportunities in this market even if we go into a 2022 type of you know drawdown in equities and so it's hard for me to give you a straight answer because depends on what you're buying

but i don't think this is a 08 financial crisis type of situation but could be more volatility ahead yeah probably now let's get to our focus point and this is around oh we have a live call never mind we'll get to our focus point after the next break let's go talk to dreecy and new from new york looking at msci hello hello how you doing hi justin how you doing doing well you're looking at msci

Yes, I've been looking at it along with another business that's been on my watch list, SPGI, SP Global. I've always found the high-quality businesses. So I was looking for a buy point for mostly MSCI because I know a caller recently called by SPGI. But I also have a question about how do you look at high-margin businesses because these businesses tend to sell at premiums because both of them right now, while trailing, sell at premiums.

p ratios either a high 20s or low 30s so how do you look at that and how do you compare it to his peers or do you compare it to itself uh you you you both uh so you want to look at its peers that also have high margins as well uh now msci is yeah she's trading at certainly a premium

You're talking about 37 times earnings. Earnings are expected to go up 11% this year and 13% next year. And I think that's the biggest risk here. If you look at, we go back to 2021. Okay. If we get a market like that, where you get multiple compression across the entire market,

you know you could see this having a similar decline back then it peaked out around 676 dollars and it fell to a low of 377. okay so that is a significant was that roughly 40 drop in that in in in that uh in that stock and if i zoom if i look at a chart it's definitely losing momentum and what's worrying for me is that it has not breached that 2021 level

Okay. So it's making a lower high. This is a monthly chart. This is a bear flag. Okay. So I don't love the technicals. I will say that I love the business, but as you said, it's, it's trading at just a very high multiple, even though it's a great business, you're just, you're talking about a free cashflow yield around less than 3%. It's not amazing. Now,

One thing I like about it compared to S&P Global is that it's MSCI. These are typically a creator of foreign equity indices. And so if more money is going to be allocated to foreign markets, they're going to get a bulk of that money. So if I'm picking between S&P Global and MSCI, I'm definitely picking MSCI. I just don't love that multiple. I think it's still too rich for

But if you think otherwise, then this is the play over S&P Global. Thank you so much. No problem. Thanks for the call. I could be wrong. I could stay at these high multiples for a long time and just continue to power higher. That's certainly a possibility, but I don't love the risk versus reward. Now let's pivot over to my main focus point, and that is in regards to Russian assets. Russian assets are starting, I'm talking about not from a

not from a political standpoint, but from an investment standpoint. And investors are starting to pick up almost any asset linked to Russia. You have names like United Russo International, which is listed on the Hong Kong exchange. It's been up 50% just in the past month. And with all the sanctions that are going on, it's really hard to gain exposure to these Russian type of assets. You have to do it through these banks

foreign governments that are more friendly to russia and it's not just the companies it's actually currencies as well kazakhstan currency is up four percent which has a lot of you know ties to to russia and that's one of the biggest gainers in the world this year is the kazakhstan uh currency and the the russian ruble is up 15 percent

versus the dollar this year and that's the best performing currency of the year but it's not that simple i would say the simplest thing is to get exposure to the russian ruble the more complex one far more complex is to do with the actual companies because of those sanctions and it's really unclear how those even if we come to some sort of resolution how much of those sanctions will be lifted

And it can be very difficult. Why? Because some of the restrictions are actually codified into the U.S. law. So Trump can't do it unilaterally. He has to run it through Congress to get approved for those removals. And so it may take many years for Russian assets to be investable once again, even though, yes, there have been there's there's money flowing there.

and it's signaling that there will be some sort of resolution to this war in the short to medium term now before the war foreign investors had 150 billion dollars in russian stocks and government bonds and a lot of those are part of the major emerging market indices as well so there could be a lot unlocked with some sort of resolution but it's still a you know gray market in many ways and then even if they're lifted

how much money will truly flow there? There's always a certain dollar amount, but what about these emerging market ETFs? Think of MSCI. Will they put them back in their index? They have control over that. Will emerging market mutual funds and ETFs actively manage ones? Will the managers decide to walk back into that market with the potential of another war breaking out in a year or two or three?

type of risk premium will be put on those type of names. So while it's tempting to go down this lane, it's not necessarily a slam dunk, even if there is a resolution to the war. There's still a lot of risk that the sanctions are not lifted entirely and that those that are kept on limit trading, limit investment, etc.,

Now, should you avoid it entirely? Not necessarily. If you can get some small exposure, not necessarily the worst idea if you believe in this administration's ability to come to some sort of peace deal and lift sanctions in the process.

Let's keep things moving and get to a fresh question from the comment section over on our YouTube channel. Jimmy G from Sweden says, what do you think about Daktronics and Modine manufacturing? I mentioned these names because both of them have fallen quite a bit lately. I wonder if you think this might be a buying opportunity in one of them or both of them. Okay. So we're going to look at two of them. Okay. And then one is sorry. So one's Modine. This was a darling for a little while.

And, you know, what worries me about Modine is that it wasn't a it wasn't a consistent business until post pandemic and then earnings shot up. And it's all about thermal management systems for OEMs, buildings, industrial refrigeration. So this is all around the data centers. And so that's what's they've been benefit. What's benefited them?

And I do think the data center investment has been overdone. And I think that is going to continue to struggle. So I would pass on Modine. I don't like that concentration in the other one. I think you have to ask another question on the other one because I don't have time. I wish I had time for the other stock.

This is InvestTalk. I'm Justin Klein, and we have one goal here each and every weekday, and it's help you achieve your own version of financial freedom. And our work continues after this final break. Get your questions in now at 888-99-CHART.

Hi there. I'd love to get your guys' take on WW Granger. Symbol is GWW. Looks like it is well off its high from late 2024. Industrial supplier, I'm looking at it as a long-term hold. Company seems to make money in the long term. I would just like to see what your guys' take is on the company, if this might be a buying opportunity. Thanks so much. Bye-bye.

All right, looking at GWW, which is WW Granger. This is a very large industrial distributor and they have 4.5 million customers and have over 5,000 different suppliers. So they sell their distributor from 5,000 different suppliers. Great business return equity, 52%. We've owned this name in the past. So it's a very good company.

But at the point, at the current point, it's pretty expensive. And the trend is now lower. You have a price of sales, it's around 3, 2.7, excuse me, which in the grand scheme of things is not that high. But historically, this name typically trades closer to about 1.7 times sales versus 2.7 times sales. Okay.

And if you look at its other metrics, enterprise value to EBIT around 17. Historically, this trades, it's cheap when it's more like in the low teens. Now it's in the mid teens. So it's getting there. But I think there's some more downside to come. Let me give you a price on this. Some major support. It's likely to not come in until about...

let's see 870 37 837 dollars okay in that range that was when it starts getting cheap now straight at 974 so you still have about another 20 15 20 drop from here before it gets reasonably priced i i once again i like the business but earnings expectations are coming down for this year and next year and it's trading at a you know mid-teens multiple so definitely a name to have in your watch list

But the trends in the price are not in its favor in the near term. And from a valuation standpoint, it needs to come in a bit more. So I'd be patient on GWW, which is WW Granger. Lastly, let's talk a bit about what you know about investing. And you're here to get educated. But studies are starting to show that the more you know is not necessarily preparing you to make better decisions. There was a really interesting study back in 19...

excuse me 1973 and it looked at horse race handicappers and there's all this data these data points 40 50 different data points and they said pick five you know cover up the the the names the horses just pick five these five data points

And that's all you, you get to pick which five they are. And then you get to pick the winners. And they had very high accuracy. 17% was their accuracy compared to 10 if they just guessed blindly. So there was an advantage there. Then they said, okay, let's give you 10. Let's give you 20. Let's give you 40 different data points and see if you can do even better. And the reality is they didn't. They still were 17%.

So what it shows you is that more knowledge after a certain point is not necessarily better. And this goes for the average investor, but also goes for bank analysts, for example. And the more data that these analysts have, they seem to be more confident in their ability to guess the outcome.

Good example is in Enron, 2001. Goldman Sachs, five analysts went into Enron, did a whole report, talked to management, et cetera. And they said that their confidence in the management is high. And then we know exactly what happened soon after that.

And, you know, what happens here for the average person is they get caught in an echo chamber. It happens in their political beliefs, on the average person's political beliefs, right? You create this echo chamber on social media, et cetera, and you do that with your investment strategy as well, is you go and try to find things that confirm your preconceived notion instead of finding the opposite. And that's what we try to do, and that's what us professionals do. We're looking at

Pros and cons, risks and rewards. And that's how you need to think about every investment decision. Now, it doesn't mean you have to have all the information. It doesn't mean you have to spend hours and hours and hours, but you need to be very up to speed on both sides of the argument.

and then you can make sound decisions so don't think that you know there's paralysis from analysis make sure you don't do that just get enough to have a good sense of the situation and make a good risk versus war decision because that's what investing is all about well i'm justin klein this completes another investdoc program we thank you for listening we encourage you to tell your friends and family about a free podcast downloads which you can find anytime at itunes spotify or google play and be sure to rate and review on itunes as well

and keep in mind if you need help understanding your financial situation whether it aligns with your broader goals your risk tolerance level and the current market trends i encourage you to reach out to me at investtalk.com independent thinking shared success this is the best talk good night invest talk is a trademark of kpp financial because of the nature of the interactive dialogue inherent in the format of this program it's important for the listener to understand that not all comments made will apply to them specifically

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