HSA Costs to Watch Out For!
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On radio, on youtube, streaming live, on invest talk dot com and for our podcast subscribers, this is invest talk, independent thinking, shared success. Invest talk is made possible by K P P financial, a registered investment advisor firm serving clients throughout the united states. Here is K P P financial portfolio manager luke guero.

Good afternoon, fellow investors, and welcome back to invest talk. My name is look great and that is wednesday and remember twenty th twenty twenty four and is my pleasure to be here with you as we've celebrate being halfway through another week. And although markets were relatively quiet today, IT does not mean that they are not changing because that is the natural state of the world.

Everything around us is changed. The seasons change, the economy changes. We are on the verge of political regime change. And so with all that in mind, we have to figure out how those things affect our lives, how those things affect our goals, how those things affect our portfolios and therefore, how we achieve our financial future. And so because of that, objective today on this podcast is radio programme.

This youtube series is to focus on what will make you a Better and more informed investor in each day, five days week, except on holidays, we need here to discuss, to learn. We bring educational items, actual items, things that we think it's important for you to know for your daily lives in or outside of the investment world. The most importantly, more important than what we bring to the table.

We can't possibly know what is on your mind unless you tell us. And so my favorite part of the show is when you call him directly. But we certainly have some voice males and all sorts of questions ready to play today.

as we always do.

Now just a bit, we'll talk about what happened in the market today and what happened after the market close and run down the show topics that we brought for you. But first, let's tackle this color question.

Oh, my question is about target. D. G, T. It's down big today. But you guys think about IT is a good time to bye. Thank you guys for what you do.

So taking look at a target corporation that is, take T G T, IT is down a big today. It's on twenty one point nine seven percent. Why is IT down that much? Well IT plumaged, almost twenty two percent today, and just about twenty percent because not only did they miss q three results, well, they also downgraded the full year performance and the q four expectations going forward.

They missed what would the consensus estimate was going to be for next quarter as well as missing what was supposed to have occurred last quarter. And so as we head into the end of the year, which should be retails best time, right, black friday is only a week away and even know if they actually start that on friday as any marber. Regardless, we're headed into the holiday season. And so on top of that, with walmart a couple days before, maybe the day before reporting fine earnings, reporting fine for looking guidance, target coming out of having negativity within their earnings report certainly drove their stocks rise downward.

Now terms of .

revenue growth of the past five years, IT looks solid when you look at the the five year basis, right from seventy five billion in revenue, billion in revenue back in twenty nine to five hundred and six billion this year. But still that is essentially three, three, eight years of revenue being flat to slightly down.

And so with that, I might yet they still have some percent realized growth of the past five years, but that's really, really backloaded before the pandemic or really coming out of the pandemic rather is when you saw that explosive growth. And it's it's going to fAllen ever since then and their margins have fAllen as well. We know that retailers tend to Operate on smaller margins.

They peaked out, out of the pandemic, about six point six percent margins down to about four percent this year. Now they have a bit of dead, but not too much, only about twenty billion, and they have been paying that off at the twenty, twenty, twenty, twenty one billion in revenue this most recent quarter. They at nineteen, a billion in revenue.

Now this is going to be from q two. We don't I don't believe this is the q three day. You have a regardless, they are paying their get off.

Their cash flow is falling, certainly not something you'd like to see. We've already talked about their profitability falling. The given yield is about where it's been since twenty twenty two, but I mean, where target been twenty since twenty twenty, he's not good place, right?

If under before market every year by sixteen and twenty eight, thirty six percent, their industry by thirteen, twenty one, fifty one percent. And so when you're looking at this and you see this company falling off, right, you're seeing there for looking Price to earnings fall below their five year average. I don't think now is a good time to buy because one of the men and perspective, from a technical perspective, IT does not look that good.

But also, how is he doing comparatively right? How is IT doing relative to other retailers? And we know again, from a big company like walmart, fine, they're doing fine a target, not so much. I don't necessarily think now is a good time to buy in when a company tells you that the future doesn't look too bright, at least in the short term, I think is best to believe them. Thanks for the call.

Do we got a lot of ground .

to cover the next forty five minutes or so here? Some of what I have planned for you, my main focus point concerns this topic. H sa costs to watch out for when dealing with health savings accounts.

H S says it's important to avoid common pitt falls and consider factors that can help maximize savings. We will also touch on how vanguard has joined the ranks of blackrock and states read and is expanding their allowance for shareholders to decide how to vote. Proxy also touch on some conflicting opinions out of the federal reserve.

Various governor is giving different opinions on how well they think we're doing a relative to the battle against inflation. And should we have time at the end of the show, you know, a big part of the future trump administration is likely to be tax cuts, but not all tax cuts are created equal. So what dive in to how we can hope that policy is used most beneficially and what could stimulate the most growth? We also have questions ready to play, including one on little beauty.

U, L, T, A, we get that one a lot. And energy corp. E, T R, as well as some questions that came in from the comments section of our youtube chat.

And of course, I welcome your finance and investment questions now or any time throughout the show. Now headed into a short break on the other cycle, will touch briefly on today's market activity and play more of your questions. This is invest talk, you know, the number eight, eight, eight, ninety nine chart.

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This is invest on lukerya is here. Take in your calls live eighty eight, ninety nine chart.

Stock a little bit about the market today. U. S. Stocks, I would say mixed, though ending near their best levels, are down, up thirty two basis points. And p five hundred flat on the day nazneen down eleven basis points around two thousand, pretty flat as well, only up three basis points on the day. And all this came after socks finish mostly higher on tuesday for the second straight day of gains.

Max seven largely lower, including the video ahead of earnings and google ahead of a detailed anti trust proposal after the clothes and nobody he reported earnings, they're down just slightly, I think about two percent last time I look. So nothing too crazy on a name that is prone to various swings. We'll see how opens up tomorrow.

Other laggards included SaaS discount stores, dollar stores of parol retail department stores. Our performers on the day includes housing, link retail, home builders, credit cards, manage care, entertainment names, dollar next was up fifty basis points. Gold finished up eighty basis points as well.

Crude oil hit the opposite way, settle down seventy basis points, offers some early morning strength, but overall, no really big directional drivers were in play today. We already touched on targets selling off on disappointing results and guidance with with the margins, as I mentioned, being a key area of scrutiny. More important issue for the market is probably q free results and guidance from the video.

After the close, we'll see how the broad market reacts to tomorrow. Certainly the after hours IT reacted negatively, though not too crazy, and negatively. Financial times reporting today that mark rote has emerged as a top contender for the position of us treasury secretary, and we will meet with trip today, which really fits with the narrative that has been reported recently, which is the trump H.

D. Administration, future trumpet administration, looking for a pic that is liked by the markets, right? I think anytime a new president, new administration comes into office, you have to think to yourself, well, you can get absolutely everything on planet earth done.

So what do they like? What do they want to focus on? And certainly, market appreciation has always been something that has been a key focus of the first administration is likely to focus the second ministration.

So this this makes sense to me here about pretty quite elsewhere and nothing on the us. Economic calender today, the over the fed speak, which will touch on later. Cook said that he saw rates trending downward with the bagni ude and timing of cuts could be driven by the data.

Still, thursday brings initial claims, so he fed manufacturing and existing home sales, flash pm s and final university mission can consumer sentiment as well. Inflation expectations will hit on friday next week, as I want to remind you as a holiday short and calendar. And because that looks fairly uneventful, new sales and Richard and fed manufacturing on tuesday, GDP initial claims, durable, good orders PC and pending homeland on a wednesday in chicago, PMI on friday and metal pretty much round out the month of november.

Now we like to bring you all information on via various mediums, right? We do IT via audio, through our podcast, through our radio show. We also do, at via video and case, are interested in seeing all of the church and what not that Justin and I look at as well the the information the fundamental information that we're looking at. And so when you leave your questions over on the invest, talk to youtube channel comments section and you like to go to those as quickly, we cancel, let's tackle one right now from handle jog shift and it's about to take her cr H. And the question is, I came across zero, eight stock when using my screener.

Do you think it's a good company? And where would a good entry point be? A theory, there is a global construction materials company and manufacturers and supplies of variety products and services for the construction industry, including cement line, really makes concrete as file installation, pretty much of anything you would need to well build major public roads, infrastructure, projects, houses are all certainly things that are likely to be occurring in mass going forward.

Now IT is a relatively large company, sixty billion dollar market cap with very little dead, about fifty fifteen rabble, billion in debt. It's interest coverage ratio eleven times so not overly levered either pays a dividend consistently right out at one point four percent dividend yield. It's usually ranged ed between two and three.

And the reason why is one point four? Well, so about four because the company is up seventy percent over the past year, forty four percent year today. Now looks like IT recently was reported earnings.

Oh yeah, he recently reported earnings. Those were pretty solid. So all this is pretty good to me, right? You have cash flow improving. You have profitability IT looks like is improving. You have a revenue growth that is slow, slow but steady, about two percent on an annualized basis, though again, right coming out the pandemic, they did particularly well. You see good growth here, about ten percent growth here, but it's tapered off a little bit.

But a lot of that growth three or over the past five years has to do with the fact of the fall from thirty one billion down to twenty seven coming into the pandemic. And so with all that mind, how does that look on a evaluation basis? What's kind of expensive, but you'd expect that right you to expect that given or it's traded over the past year, but sixteen times we're looking Price earning about three point one times Price of book value looks like it's on overall the upper end of its range.

I think that this is a company that looks like IT has well a track record without performance, certainly generally over the past now five years, there was a period of other performance in twenty, twenty and relative the industry, but it's been a great year over the past couple years. And because it's been a great year because they've been able to write the ship from the falling trend of revenue down into twenty, twenty and then upward back and to what's going to be thirty six billion as of this year. That looks expensive to me.

And you can tell because of how IT is relative to its ranges, given what is honestly not that exciting of growth. Now I do wonder where a lot of its business comes from. Well, looks like eighty percent of IT comes from. I'm like sixty percent of the united states to the rest of IT externally.

And so this could have a negative impact from tariff s right? And so given all of that given words currently Price, I keep IT on my watch list for now, but I would have to pass now number to break and still to come. My main focus point, more answer to your questions. And will from Sandy ago. Hang on because your question will be next.

The numbers are in invest talk now with more than sixty million downloads. Justin line and look arrow are ready to answer your financing investment questions. Twenty four seven invest talk eight, eight, eight ninety nine chart.

It's going to will from Sandy ago, Colin in live. Have any question about mcc. Do you want to do you look about IT?

I owe IT that just speculating on IT because I know it's a penny stock and i'm up a little bit. So i'm one in what I should take my profit since IT was downtown graded today.

Yeah, you know, that is an interesting one. And did you buy IT before IT rocket IT off in the space? By chance?

yes.

Oh, well, congratulations on that one. For those who don't know a fredy mac F M C C, it's government sponsored enterprise is currently in conservative or ship. Essentially, what this does is the federal homeloans mortgage CoOperation.

And what he does is IT. IT helps to ensure that the U. S. Housing market really has a reliable, affordable liquid to supply a mortgage fund.

So IT purchases, the ones from lenders IT pulls the mortgage ages into security, is a guarantee payment, all sorts of things that help keep the us. Housing market movie. And so IT rocket IT off into space.

As I said right after right before the election in october, we're really gave to the election from about a dollar twenty to about three dollars and thirty cents, right? That's why year to date is up two hundred and forty three percent. But today I was downgraded, fell about ten percent.

And the reason why is because IT took off because a lot of people rightly thought that the company would be could be potentially privatized. Now the downgrade today is related to the mechanism by which illegally IT might have to be privatized and what that could mean for the profitability of the company and the structure the company. And so for me, I see a lot of legal uncertainty here, which could move the Price either way, given what charter has to Operate under if I were to be privatized.

And so if you're up, you're speculating IT looks like you won the speculation game. I I would take profits here. I I would get out of the name. We don't know what what's going to go from here because there's just a lot of illegal uncertainty on if it's even going to be privatized or where the mechanisms for privatization might be. That also so good.

Yeah, I yeah sounds good. I think i'll take your advice and get out of IT.

Well, fantastic. Have a wonderful day.

you too. Thanks for the info.

Let's go for two in a row. This one came in earlier from eighty eight, ninety nine years.

Hello, chen, who all look uh really enjoy the show exactly um I really appreciate the show. Question is about alter beauty thinking maybe second quarter of this year, berkshire and at the day as purchased and took a position. And then when they just released thirteen case, I think they said that they have released their sold majority of that position.

I like the source, the products that they sell and the valuation is good, but just has been taking beating the three days and the news that share. So so just wanted to get your take a alter. I have a position.

Thank you. That was the name. We get questions on a lot out of beauty to her. U, L, T, A. And it's at a rough year down twenty nine percent.

Year to date down, but six percent, ten percent of the past three months only down fifteen percent though on the fifty two week. And the reason why this has not been performing particularly well was a perception of a diminishing consumer. And what that could do to companies like all anto specifically.

And so every time someone y's called in about this name, what i've mentioned is that consumers will recover. Consumers will eventually recovered. There are some good growth prospects here.

IT has a very modest valuation and they are expanding stores, their loyalty programs, they refurbish res from a fundamental basis. The company does look solid, right? It's got one point nine billion in debt on a sixteen billion dollar market cap company.

It's not really levered in in a crazy weight. Cash los improving its profitability looks Better. It's buying back shares, which is certainly something we like. But I just think in the short to medium term for denise is doesn't doesn't necessarily look at but headed into you mid twenty twenty five into two twenty six, twenty twenty seven, their strategy of expansion plus being able to capture more dollars from consumers who will potentially have a loser per strings, right, can be benefit al with this company.

This just seems to me and has seemed to me for the entire year to be a situation of the company that is fundamentally fine with a good strategy that is just cyclical. This just a circle company, right? Revenue growth ten percent on the alizad basis over the past five years, but over the past three years only grow about ten percent right, about one percent right. And so if .

you is down .

even on the past year. And so I think there are certain situations where companies are down because they're poorly performing. There are certain situations where companies are down because they are cyclical. Yes, warm buffet may have sold some of this.

Bircher may may have sold some of this, but birch has also been raising cash we talked about at the other day why they might be doing that IT doesn't necessarily mean it's an indictment on this specific company, right? Currently this companies training at fifteen times for looking earnings, well below is five year average Price book, about six point nine below is five your average Price. Cah for eleven times below is five your average.

And so I think, and i've thought for some time, that these are the types of levels where you can get a pretty good discount on a company that has a great strategy and is likely to succeed for the coming years. So maybe for the not the next couple months, her moon to break my focus point is still coming up. So hang on.

Look, gero is here and ready to tackle your questions.

I would like to know more about the a company which i've been drawn for sometime. Quick question on a very risky play. IT is a company. I caught my attention because the R O E is like, close to one hundred percent.

Invest talk is ready twenty four seven.

And I was just wondering, are there any investment accounts with different banks that you would recommend something that that .

may offer a good resources call invest talk A A ninety nine .

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Invest, your questions are free. The answers are unbiased. Look, gary is here now. Eight, eight, eight, ninety nine chart.

My main focus point today is about something that is commonly used by, I would say, a lot of people, and that is H S. A. But more specifically, H S, A costs to watch out.

For now, health savings accounts or h sa, are widely regarded as valuable tools for managing health care costs and saving for retirement. However, a new report from the consumer financial protection bureau's ds consumers to watch out for hidden fees that can chip away at these benefits. Hs s do offer significant tax advantages, contributions, earnings in the draws for qualified health care expenses are all tax free. And I like flexible spending accounts. He just don't require you to use the money within a year, making them a powerful retirement planning took today, there are more than thirty six million, ee says, in the united states home, over one hundred and sixteen billion in assets, five hundred percent increase since twenty thirteen.

But these .

accounts do come with potential downsides. Come on fees, including monthly maintenance fees, transaction fees in a paper statement charges according to the c fpb. Fees can significantly impact smaller accounts.

For instance, instance, think of accounts of thousand dollars in baLance and IT could generate just fifteen to fifty cents of annual interest while occuring madness fees of around forty five dollars or more over time, this road savings, especially for underfunded accounts. Now all fees are concerned. It's important to point out that aga still offer considerable value, and it's because tax savings from aga s typically far outweigh costs, reducing state, federal and local tax liabilities.

Because he says mature, having been introduced only in two thousand and four, it's likely that fee structures are going to evolve, right? That's the same thing that happened with four one case after being introduced in the one thousand, nine and eighties. And other thing, going for a fee compression may reduce costs in the years ahead.

But for now, account holders can take a few steps to minimize fees. First, for example, you don't want to opt for electronics statements because I will eliminate your paper fees. And growing account baLances through consistent contributions can also offset costs as a relative thing, right?

If you have a larger account, you're paying forty five dollars in fees that's less significant than having a thousand doll account with forty five dollars in fees. C, F, P, V highlights that while fees have a larger impact on smaller accounts, most ha baLances are significantly higher than three thousand dollar. Example that we used the averages ha about is about four thousand and three hundred dollars, and consistent funding can make fees less impactful over time.

For those using ags over decades, fees often add up to a relatively small fraction of total savings. In short, he says, remained a highly affected financial tool despite some fee related chAllenges. And so by staying informed count terms and imaging strategic contributions, consumers can maximize the benefits of their health savings accounts while keeping costs in check. That's coming back to invest, voice, bank and play this listener question now afternoon .

Justin and luke, complete love the show got a question about solve. Vin tum is and sam o is an ocean elisa linking V S. And Victor, it's a spin off from three years.

I got a bunch of stocks based on a wonderful spin off reading about the company. I kind like the medical aspect of this because I don't have much medical my portfolio, but right now, about one percent of my portal folio on i'm debating new company. Do I sell IT and look somewhere else? So I up up to three percent. I just sit on IT for a while and and see where IT goes again, whatever you can give me on so winter and your thoughts on a new spin off.

Thank you very time. So sol ventures corp. Take A S O L V is a health care company that developed, manufacturer and sells products and services to improve health care.

They have healthcare information management, their filtration and engineering, patient consumer division, material science division and a data science division. And so their products are used in health care, medical care, dental care, dialysis, all sorts of things. Now I think there's a broader question here.

And the broader question is how do you deal with spinoff? And so as if you were call I and Justin generally advise not investing in IPO for you reason why well, new companies haven't traded before, haven't been public companies before, a lockup periods for insiders, walk up periods for people who participated in deals. And so all that can kind of distort pricing volume.

And generally speaking, empirical researchers just shown that ibs tend to under perform over the first year training and in aggregate. Now when we're different, right? Spin, ffs, are if there from publicly traded companies, divisions of companies that have been publicly trading, divisions of companies that have had public accounting, public scrutiny, also do things such that is really easy y different category for my peos.

And so I don't really have the same comes and hesitations for investing in spin, ffs, that I do for ips. Take a look at this company. It's about eleven point five billion in market cap, eight point five billion in debt.

So a little, little bit of dead on the baLance, but not too much, I would say. Now the problem here from my perspective, right, is even though I think it's fine to invest in spin off rather than ipos, I just don't have a lot of information to make a determination here. I do have three years of revenue growth, and revenue looks pretty right from eight point one billion to eight point two billion.

I do have margins which have been falling from seventeen point nine percent three years ago, a twelve point six percent years ago, sorry, supposed to top point six percent this year. I do have free cash flow that has fAllen as well. And so even though, generally speaking, I don't have a problem with investing in spin also, I just don't have a lot of information here that tells me that this is a good company to hope.

And more importantly, is that what you want your primary health care exposure to be? I having on a lot, right? It's now one percent.

You're perfuse ly if you want to hold IT a one percent, I think that's perfectly fine. But if you have no other health care exposure, I don't think you should necessarily doubled down on the name, if anything else. Has just really not exhibited much growth at all over the past three years.

And so keep on to hold onto IT completely, find making your primary health care exposure by investing more. I would have to advise against that. I don't think that's a surely good idea.

Cycle about vanguard. Vanguard is expanding its program that allows the retail shareholders to have a direct say in proxy voting decisions. Nearly four million investors controlling up to two hundred and fifty billion can now choose how their votes are cast on key corporate issues.

Among the options is a new profits above politics approach, reflecting feedback from shareholders who prioritize financial returns over environmental, social and governance, or esg factors. This move comes as vanguard and other large asset managers are are navigating growing. Political conservatives argued that major fund managers are pushing woke capitalism, while progressive criticize any guard for voting against all environmental and social shareholder proposals.

This year, the reduction of new voting options highlights detention these firms face in bounced ing competing demands. Investors in eight vanguard funds will be able to choose from five voting strategies. Letting vanguard decide is one of them.

Voting with company management is another. Prioritizing esg factors, voting present or focusing purely on profits. The program will not yet include vanguards largest funds like those tracking the M P, five hundred or the U.

S. Total market. But when our plans to expand access to investors who hold shares through retirement accounts potentially broaden the program significantly, competence, like black rocks and states three, are also rolling out similar initiatives.

Black rocks voting choice program now includes retail investors offering sixteen voting policies to choose from many. We certainly will not be getting into all sixteen because we just don't have the time to do that. So far, about a quarter of eligible assets have object into the program.

Meanwhile, state eetes initiative plans spends one point seven trillion, one point seven trillion in assets with ten different voting options available. Again, I don't think we have the time to get into all of those today. The person these asset managers really extends beyond proxy voting.

Regulators, including the federal deposit insurance commission or fd I C, are examining whether firms like vanguard and blackrock require additional oversight due their large stake in us banks. The fit is considering title rules when index funds owned ten percent or more of the financial institution and over vanguard. The early response with voting program has shown mixed results in nearly half of participants.

Story have opted to let the company use its own judgment whether these programs will leave in a regular choice scrutiny. So does remain uncertain, but still by hand. More control to investors.

I think that guards moving in the right direction, you're having more control to shareholders. And so regard and its arrivals are are really hoping to address here. This is dull criticism to remove remove their hands from the situation.

And so I certainly believe for them, they are hoping that in the future, shareholders were will have more of an active role in deciding what to do. But either way, I am always in favor of putting more power in the hands of shareholders. Like another live called Brandon from houston has question about C. E, D. We outed. You're looking about IT.

Uh, I put in a half position whatever. I dropped to ninety box. I've been looking to put a chemical company in my portfolio for a while now, and I know is the name that you guys had mentioned, uh, in the past.

By the way, I love the show, love you guys been a long time as and so when I dropped to ninety, i've been looking at evaluation metrics and they still look pretty good. I know that um they're projected demand is is looking to slow and the earnings have dropped a little bit, but there are still going up slightly next year. When I look at IT, in sense z versus a lot other companies like east men pronto is so in west lake that a lot of the metrics s look Better.

So I just wanted to see now that it's dropped to seventy IT, looks like it's maybe at another support level. Would you look at this is an opportunity put in the other half position? Or or am I missing something here?

You colonies corporation took your C E. It's a materials company. It's focuses on on chemical special materials, produces and supplies products for really a wide range of industry and consumer uses.

And taking a look at if its geographic segments here, this might be an issue, right? Twenty percent of its revenue comes directly from china. Twenty six percent is from the U. S. Twenty three percent is germany.

And so maybe aside from the fact that they missed earnings in early to november, aside from that fact, there could be some issues with potential trade tensions between our european partners and a more adversarial relationship with china, which really makes up the bulk of their business, right? The bulk of their business is international. That could certainly going forward.

Now we did see from there for looking guidance that along with missing profit and sales forecasts, they did adjust down. Therefore, looking guidance and talk really about focusing on cutting costs, right? And companies that want to cut costs by slashing a divided or or whatever else they decide to do are essentially saying that there's two sides do coin here, right? Profit is not only what we bring in, but what we spend.

And it's kind of an admission that they don't really have that incredible of a growth strategy to deal with the fact that margins are impressive. They had they peaked out into that margin and thirty five percent in the pandemic. Let's not count out.

Aside from that, thirteen percent is the lowest that they had. Well, this year's projected to be eight point nine percent of cash low looks to be falling off a little bit. They are buying back shares, which I do like, which has contributed to their dividend yield increasing to three point eight percent, which is the highest st spit in five years.

But the biggest driver of that is really it's down fifty three percent year to date. And so you know even with that in mind, IT is trading still not at the lower end of its five year average, right? The low it's trading at Price dating for four point and seven point below its its average here.

It's five year average over this time for him, yes. But I mean, technically, there's nothing to suggest given that this this fall off is really pretty recent, right, was coming in to november when they reported earnings. I don't necessarily think that this is this is a buy signal here.

This is this seems to mean more like a Price is everything. We got a lot going on here. We have poor for looking guidance, we have the poor past performance, and we have an uncertain partnership, uncertain relationships with trading partners that could impact this company.

And so I don't necessarily think that IT is a self signal at this point, but I don't see anything that tells me right now is the absolute time to buy. So I, I, I would kind of be in a holding pattern right now to see what happens in terms of this Price discovery phase because IT broke below all of its support levels and it's trying to find some new support right here. Does that all make sense?

yeah. Would there be a Price or any metric or any new development that you would be looking at to say, okay, maybe this is another chance to look at this again?

yeah. I mean, if you look at IT over the past months on a par moments basis, like from a sector moments perspective, historically speaking, down moments names tend to keeping down right, be at heard behavior or just you know, for fundamental reasons, up momentum named team to be to continue, at least for the short term, to continue their momentum upward as well.

And so I think that you have some real bad technical signals here, right? Some people call the technical factors I like to call the moment um until the downward enum m subsides, where it's probably going to be right now in the bottom five percent of the sector until IT breaches back above the bottom twenty five percent and cuts that downa ament. I'm significantly I don't think there's any reason why you you should buy the same.

Okay right on .

much yeah have a wonderful day is investor. I look ground with one goal here to help you achieve you a financial freedom or we're to do this after this breaks to keep your questions in. Now at eighty eight, ninety nine year.

Got a question for Justin or look, you're the best person to ask you .

a quick question. What are some signs of a that a recession is coming? IT is only lesson for people who own stock, even if they don't short the stock that their own nation know whether it's been happily shorted.

Invest talk is ready. Twenty four.

seven, if gets to one 0 to one seventy five in that range。

That's why I pick IT up often like you just I appreciate. I'm hoping you'll give me your take on our math technology. O, R, A, curiously, you think I Better me to let to go and spend money out there?

Investor A D A ninety nine chart or post to your questions on the invest talk youtube channel.

Invest talk, tell your friends they can listen live, download the free podcast or watch invest talk on our youtube channel, and they can leave their financial investment questions anytime. And eight, ninety nine years there.

luke. And just a map for many applications. Ling, long time listener of you guys, and I have a question here for the show, please. I hear you talking a lot about energy, stuff and how that could prosper here in the future. And hopeful ly, under new presidency and staff IT will still have growth.

What i'm looking at is a ticker symbol X O P, and that um etf is in oil, which looks like IT should be going up in the future with all the drilling. Also with natural gas is always a good thing. And I think that also includes some pipeline stocks to her just and they are the big money making thing and gas is the pipeline. So i'll listen your thoughts about this fund on the show and have a good day. thank.

You so taker xop is the spider ism il and gas exploration and production etf, say thirty five that basis point cost fund that essentially takes the S M P total market index, takes all the oil and gas, oil gas exploration production oil, gas are finding and marketing names and then equal weight them the next time you're an equal waited fund that essentially is overweight. Smaller names and underwaiters large names. And that's exactly what you see here.

It's about forty four .

percent and large cats, about forty five percent in mid cap, eight point seven percent in small caps and a tiny seventy basis point in microcap compared to their benchmark, which is ninety one percent of large caps, seven percent in midcap, one point one percent in small camps. And so although I don't typically like equal waiting because, you know, I think it's a too simple .

explanation .

for how we try and and weighed towards the names that do out perform small.

small cap names, I think at least .

gives you Better exposure to the things that typically drive longer term spector returns. And so for thirty five basis points, I think that's a completely five this you're looking for now. I think that the benefits to natural gas are probably going to outweigh the benefits to oil.

I've tried about this on on the show before is twenty eighteen is when the U. S. Became the largest producer oil in the world.

And the amount of oil we've been producing and exporting has only gone up during the by administration. Axon came out and said, you can tell us we need to drill, but you can force to drill. Or in a situation where there are permits that have been issued that, that are not being used .

just because .

we are encouraging the oil industry to drill, doesn't we necessarily will. And oil Prices have been lower, right? They have been lower because certain countries in OPEC clasp bit and norm quotas, they're lower because chinese demand has been lower.

And that has been a big driver of downer pressure. They're not so much lower because we're transitioning. It's really the other factors that have driven them lower. And so I would contend that within the energy space, I don't think oil is going to do as well nothing as I can do well as well as others think IT will. And that's why you actually look back post election, oil producing names, oil and gas exposition names, have not done that well comparatively to the .

rest of the market in an aggregate .

right market capitated. This, this this fund has done nine percent months today. The reason why? Well, it's undergoing weight, those small cabinet, but you pull that back for the data a percent and year the date of six percent rest.

The market is up a lot more. And so if you were looking in the energy space out of probably focus more on that natural gas sac unless on that oil segment. But if you're looking to get into the segment broadly, I think a market capitated fund is definitely find way to do IT, and this one is not too expensive.

Before we had off, I wanted to briefly mention an interesting thing about the federal reserve. That is conflicting statements, right? Show bowen speaking in west bomb beat floor to express caution about lowering rates too quickly while lisa cook presented their views on inflation and monetary policy and essentially said that, you know, we are doing a Better job than a lot of people assume we are.

And so this just adds more and more to the uncertainty surrounding the fed and the uncertainty, ty, is why we meet here each and every day. I'm luco, and this completes another investor program. We thank you for listening, and we encourage you to tell your friends and family members about our free podcast download.

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