082 Terry Savage: Financial Realities Right Now

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welcome to fun with annuities with your

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host me stan the annuity man america's

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annuity agent can annuities be fun can

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contractual guarantees be fun

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absolutely they can find out the brutal

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facts about annuities with no sales

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pitches or high pressure nonsense just

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the brutal and factual annuity truth

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which is all you need to hear

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let's have some fun with annuities and

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let's have that fun start right now

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[Music]

0:39
welcome to fun with annuities i'm your

0:41
host stan the annuity man america's

0:42
annuity agent license in all 50 states

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and are saying here at fund with

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annuities is living the reality not the

0:48
dream

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but today's kind of a dream

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because one of my favorite guests has

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returned

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and i'm so happy she is here um she is

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known as the money lady and she is my

1:00
choice for the next fed chairman

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and honestly she is one of the top

1:06
financial minds in the world that is not

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disputable at all

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um and i love reading her stuff we'll

1:13
have all of her information on my site

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at the annuityman.com so you can go to

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her site and watch the videos and read

1:19
her stuff and buy her books

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etc

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and i just want to welcome everybody on

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all the major podcast platforms and on

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the fun with annuities youtube channel

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with that being said

1:30
welcome royalty terry savage how are you

1:33
terry oh i think i just show up so you

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can introduce me because that always

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gets me going for at least a week or ten

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days absolutely i mean the good news is

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you can always just go back and just

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loop it and you know it's on tape so

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um i'm going to include you i just

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looked at my screen i'm like i need to

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get your face up there on the split

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screen because that's the way we like to

1:56
do it let's jump in and talk about

1:57
inflation my my good friend janet yellen

2:00
who i've never met

2:01
she talks about inflation as

2:04
transitory and then the argument is it's

2:07
sustained

2:08
um i could care less what janet yellen

2:11
says i want to know what terry savage

2:13
says well thank you very much um i have

2:15
met janet yellen it's actually i think

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that word transitory is going to go down

2:19
in history and be associated with fed

2:21
chairman jay powell

2:23
and you know allow me to take you back a

2:24
few years do you

2:26
sometimes i think what this proves is

2:28
that fed chairman can say something but

2:31
the markets always have the last word so

2:34
you remember back when alan greenspan

2:35
said a rational exuberance

2:38
kind of he was right only the market

2:39
went up another couple thousand points

2:42
before it collapsed

2:43
and i think jay powell saying that

2:46
inflation is transitory is going to be

2:48
one of those buzzwords that remind us

2:50
that while the fed is powerful the

2:52
markets are more powerful and they will

2:54
eventually have their say

2:57
and i think when you bring up the word

2:59
inflation that's just what's beginning

3:01
to happen

3:03
we are seeing

3:04
not forget the cpi

3:07
and this most recent increase in

3:09
consumer prices you see what's going on

3:11
in the labor market with strike with all

3:14
of these uh unions and others

3:17
who are just not saying i'm not going to

3:18
go back to work you have to be a union

3:20
member to say i demand higher wages we

3:21
have millions of jobs unfilled because

3:24
people won't go back to work there and

3:26
so there's a tremendous wage component

3:29
housing is a huge component of the cpi

3:32
uh now rising interest rates which come

3:34
with inflation typically might

3:36
dim that that the rise of meteoric rise

3:39
in home prices but the fact is we have a

3:41
lot of the components

3:43
of

3:44
permanent inflation being injected into

3:47
the economy along with the shortages has

3:50
been the main headlines recently of

3:51
goods and subs goods that are backed up

3:54
at the port so i think this is actually

3:56
we'll look back on this exact moment as

3:59
when everybody realized the fed can say

4:02
whatever it wants

4:03
inflation's coming and the markets know

4:05
it

4:06
and it's i think it's going to be

4:07
sustained for a longer period of time as

4:09
always tell people inflation's

4:11
customizable and personal i mean i don't

4:13
drive a lot so i don't feel the gas

4:15
crunch but for people that drive

4:17
i really feel sorry for them or if you

4:19
have

4:20
small kids my kids are out of the

4:22
household thank goodness um they're

4:24
still on the payroll terry but they're

4:26
out of the household but anyway um

4:29
you know people with small kids

4:30
inflation hits them differently because

4:33
they have to go the grocery store and

4:34
buy different things can you address

4:36
kind of the customization of inflation

4:38
and for you know most of my listeners

4:41
are either

4:43
retirees they want to be retirees

4:45
they're pointing toward retirement

4:46
they're seniors they're baby boomers

4:48
they're people that are

4:49
do-it-yourselfers that want enough

4:52
information and really good information

4:54
so they can make a decision on their

4:56
terms

4:57
how do you address inflation from that

4:59
group

5:00
yeah well i call us grown-ups

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[Laughter]

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we need grown-ups in the room terry yeah

5:07
we need grown-ups in the room and um all

5:10
grown-ups are going to feel this if you

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keep this this inflation if you heat

5:14
your home with gas

5:15
you you may not have you don't fall to

5:17
futures markets but now gasoline prices

5:19
maybe you don't drive a lot stand but if

5:21
you heat your home with gas which a vast

5:23
majority of america does and that's an

5:25
input into electricity as well

5:28
gas natural gas prices have more than

5:30
doubled so you can expect at least a 50

5:33
increase in your home heating bill this

5:35
winter and and for this particular 50 do

5:38
you're saying 50 percent

5:40
yeah

5:40
your monthly bill in december last year

5:43
it was 382 or whatever it was i think

5:46
you're going to see 500 something

5:48
dollars

5:49
now i i definitely think that's going to

5:51
be passed along and even though we talk

5:53
about it you know i'm on the board of

5:54
directors of cme group the chicago

5:56
mercantile exchange i've watched the

5:58
futures on everything from gold and

6:00
oil we see oil over 80 a barrel now

6:03
again all part of this inflation note so

6:05
seniors just this past week it was

6:07
announced that social security

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recipients will get a 5.9

6:11
increase the cost of living increase

6:13
that's the biggest in 40 years since

6:15
1983. is it 5.4 or

6:19
nine five point nine did it for five

6:21
point nine

6:22
okay so remember back in uh we some of

6:25
us remember 1983 remember the inflation

6:28
we remember in 80 the prime rate at 21

6:31
as paul volcker tried to ring inflation

6:33
out of the economy he was fed chairman

6:35
then we remember treasury bill rates

6:37
that 12 and 13 percent they were and we

6:40
remember that kind of inflation i'm not

6:42
saying that's going to happen today but

6:44
along with inflation tends to come

6:46
higher interest rates so if you think

6:49
that you are um

6:50
blessed now with an almost six percent

6:53
increase in your social security check

6:56
they have not announced the premiums yet

6:58
for medicare part b that's a

7:00
hospitalization and you know those creep

7:02
up every year so that's going to eat up

7:04
a little of your check

7:06
they have not announced yet you know

7:08
every year as a senior about this time

7:09
end of the year you go through at

7:12
medicare.gov your prescription drugs the

7:14
part d plan even if you're not taking

7:17
them

7:17
but if you are you line up all your

7:19
prescriptions and see what they've done

7:21
in your plan and maybe you need to

7:22
switch to another one i can promise you

7:24
that drug prices are going to go up so

7:26
that huge increase you just got in your

7:28
social security check or will get in

7:30
january will be eaten up by your home

7:32
heating oil bill then remember energy

7:34
drives the cost of all the fruits and

7:36
vegetables that we're smart enough to

7:37
eat because those are trucked across the

7:39
country so those will go up uh so your

7:42
home heating bill your medical prices

7:44
your medical services that aren't

7:46
covered by medicare unless you're in an

7:48
advantage program i guarantee you that

7:50
that boost in cola and that social

7:53
security check will be offset by other

7:55
rising costs and the one bright thing is

7:58
you might get a little more interest

8:00
on your cds

8:02
except that the banks that don't want to

8:04
pay you any more interest because

8:05
there's so much let me interject this is

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when i promote myself my goals

8:09
multi-year guarantee annuities

8:11
outperform cds and you can get those

8:13
live rates on my site but i want to go

8:15
back to inflation and i know that you

8:16
are a a big proponent

8:19
of owning stocks over the long run

8:22
but

8:23
these are some markets that and i hear

8:25
this every day from people um

8:28
it you know people that are grown-ups

8:30
terry we've seen markets actually go up

8:33
and down there's a lot of advisors out

8:34
there that always say that i have cowboy

8:36
boots older than they are and they've

8:37
never seen anything go down

8:39
what do you tell the people right here

8:41
even though historically yes stocks work

8:43
what do you say

8:46
well i say i'd like a typical economist

8:49
which i'm not on the one hand and on the

8:51
other hand here's what i know about

8:52
stocks there's never going back a

8:55
hundred years now this is ibbetson's

8:56
research at morningstar never been a

8:58
20-year period where you lost money in a

9:00
diversified portfolio of large companies

9:03
stocks with dividends reinvested that

9:05
that's even adjusted for inflation

9:08
so i know you need a component of stocks

9:11
in your portfolio but i also know that

9:14
as we talk we're so close to all-time

9:16
market highs and anybody who had a 401k

9:19
for years and put that 300 away suddenly

9:22
you've got a real hunk of money you've

9:23
rolled it to an ira you're making

9:25
investment decisions about it and

9:27
because the market's been so generous

9:30
it's been oh my goodness i have more

9:32
money than i ever thought and now the

9:34
question is

9:35
how do you

9:36
get back to an asset allocation that

9:39
makes sense

9:40
so let me just say this

9:42
you got to have stocks that's going to

9:44
offset inflation i know we're going to

9:45
have inflation it

9:47
i don't know am i the only old person

9:49
that remembers the components of

9:50
inflation are too much money pushing up

9:52
prices wages a spiral we're going to see

9:55
that you're con unfortunately you're

9:56
that even though that's a factual

9:58
thought you're somewhat of a contrarian

10:00
right now

10:01
because it seems like everyone's

10:02
forgotten that everybody has forgotten

10:05
that and somebody haven't learned the

10:06
lesson but here's the thing i know

10:08
everyone out there said okay she said we

10:10
have to have some stocks but maybe we

10:11
have too much in stocks where do we put

10:13
it what are our other choices

10:15
okay so

10:17
bonds absolutely not

10:19
because you can lose as much money in

10:21
bonds as you can in stocks who would

10:23
want to lock up your money now for 10

10:25
years at one and a half percent or so in

10:28
u.s treasury bonds if we think

10:31
inflation's coming

10:32
we know the bond market will demand

10:34
higher interest rates when the treasury

10:35
tries to borrow more despite what the

10:37
fed has been able to do recently and so

10:40
you want to be locked up for five or ten

10:42
years so you want your term and then you

10:44
go oh my gosh i went to my bank and

10:46
they're giving me like a quarter of a

10:48
half a percent

10:49
on a one-year cd i just looked those up

10:51
for a show i did recently i mean that

10:53
makes you feel like a fool of inflation

10:55
is up at five percent because you're

10:57
getting a six percent cost of living

10:58
increase you know you're losing

11:00
so stan i turn the microphone back to

11:02
you because what would you do

11:04
well um

11:06
you know i used to live in the world

11:08
with morgan stanley dean witter playing

11:09
weber ubs so i used to be on that side

11:11
of the markets

11:12
um it's it's a tough place to be right

11:15
now just because it is volatile and our

11:18
gut instincts are all telling us

11:20
you know if there was an event this this

11:22
thing could dip i do think i agree with

11:25
you 100 that you're you have to have

11:27
that long-term vision but that's hard to

11:29
do in the short run you do have to be

11:32
disciplined you do have to hang in there

11:34
there are some you know the reason our

11:36
phones ring off the hook right now is

11:37
because

11:38
people are buying these multi-year

11:40
guarantee annuities because they beat

11:41
the cd race that doesn't mean it's

11:43
perfect but that means there's that's

11:44
one of the few places to go

11:47
uh so there's you know as i tell people

11:48
terry there's no perfect answers just

11:50
really bad sales pitches which we don't

11:52
do but i'm really um i'm i'm really

11:55
interested

11:56
to hear your take and insight on

11:59
the corner that the fed has painted

12:02
themselves into

12:04
and we've been around a long time and

12:06
this is blue water i i'm i'm anxiously

12:09
watching just like you are

12:11
what are they going to do i know that i

12:13
think the the chairman gets i think he

12:15
gets reelected or reappointed in january

12:18
do you cons do you think he will then be

12:20
a little bit more autonomous than he is

12:22
now or is he going to continue to be

12:24
bullied by

12:25
you know whoever's in office but let me

12:28
back up a minute because you're not he

12:30
or she okay

12:32
i want to talk about jay paul but i want

12:34
to take a step back because everybody

12:36
out there is going but wait they didn't

12:37
answer my question so what do i now okay

12:41
and you're right no not perfect answers

12:43
but i if there were ever a moment that

12:46
number one

12:47
you had to

12:49
be balanced

12:50
you do need exposure to stocks you do

12:52
need to understand that that's entirely

12:55
possible even if you're 65 or even 70

12:58
you're going to probably live into your

13:00
90s another 15 or 20 years historically

13:02
over a long period stocks have beat

13:04
inflation so you need a component of

13:06
stocks it's not just the economic

13:09
decision you're making it's the

13:10
emotional decision it's easy to say that

13:12
with the dow you know within five

13:14
percent of its all-time highs if the

13:15
market drops 15

13:17
are you going to chicken out all of a

13:18
sudden and dump your stocks and say oh

13:20
my god i can't afford to lose it i won't

13:21
be able to be retired

13:24
then you have to decide that now

13:26
and it's very painful to say i only get

13:29
a half a percent in my cds

13:31
i'm going to talk to stan of i have a

13:33
mica i've i mean i've had a long time

13:35
because i've always bought stuff that i

13:37
wrote about so i could see how it works

13:39
and boy

13:40
you know for a while it lagged the stock

13:41
market it's not in my stock component

13:43
but it makes me feel a lot better as a

13:45
part of my cash component and the fact

13:47
is you need liquidity you need inflation

13:50
protection i'm not against saying with

13:53
gold still under its highest you know

13:55
under that's around 1800 as we talked

13:58
that you might need a gold shares mutual

14:00
fund maybe one that pays dividends i'm

14:02
not going to go tell you to get into

14:03
cryptos if you want to do that you can

14:05
go to go to las vegas and buy some

14:07
cryptos either one

14:09
well what i'm saying is you need a

14:10
really disciplined approach right now in

14:13
a quiet time because otherwise you're

14:15
going to panic and having a little cash

14:17
even if you're losing

14:19
out to inflation right now having some

14:22
liquidity safe money chicken money i

14:24
call it money you can't afford to lose

14:26
on the sidelines will allow you to stick

14:28
with your other investments and not

14:30
panic so i just wanted to finish that up

14:33
i agree with you and i and i think the

14:34
the the conclusion to all that is

14:36
there's no perfect answer yeah and it is

14:38
customizable and you have to it all

14:41
comes down to risk tolerance how much

14:42
risk are you willing to transfer how

14:44
much risk are you willing to shoulder

14:47
um but you i think what i think what i'm

14:49
getting from what you're saying is

14:50
you're sounding the alarm to be

14:52
disciplined because it's coming it's

14:55
like when you're out on the beach and

14:56
you see the wave getting ready to break

14:58
you you get ready for it to hit you

15:01
um i think i think the same thing's

15:03
going to happen

15:05
i run to shore

15:08
none of us knows for sure and so you're

15:10
always going to be a little right and a

15:11
little wrong the problem is you don't

15:12
want to be a lot wrong and then trying

15:15
to fix it at the wrong time okay

15:17
i don't know i think the best

15:20
likelihood is that interest rates go up

15:22
because we have inflation and j powell i

15:25
think has been absolutely independent he

15:27
made it

15:28
okay

15:29
oh yeah i don't i mean i think you know

15:31
people like elizabeth warren say he's so

15:33
independent we've got to get rid of him

15:37
i think the fed

15:39
did a really good job at the beginning

15:42
of covid because we would have had a

15:44
really global financial crisis and the

15:46
fed literally said we're going to print

15:47
enough money and the government said

15:49
great because we're going to pay out

15:51
enough money

15:52
to keep this from being a total global

15:54
collapse because the dollar is the

15:56
center of everything so i'm not down on

15:58
jay powell at all but what i am down on

16:01
is the fact that congress thinks that

16:03
they can keep

16:05
borrowing money because you know they

16:08
say they're going to tax it away but

16:09
they'll never get enough in taxes so

16:10
it'll add to the deficit which they'll

16:12
of course raise in the debt ceiling and

16:15
the fed has been very accommodating

16:18
so whenever the government issues ious

16:20
the fed goes out in the open market and

16:22
buys them for its own portfolio putting

16:25
newly created liquidity into the system

16:27
nobody ever asked jay powell to put his

16:29
driver's license number you know on the

16:30
back of the check it was a great line

16:32
under paul voker davis that is a good

16:33
line yeah but the point is they just

16:36
create new money to give out and that

16:39
creates this inflation spiral which

16:40
we've all forgotten about

16:42
so

16:43
i i think that they should keep jay

16:46
powell he gets it he's done what he has

16:48
to do and he's trying to get congress to

16:50
do something responsible and we should

16:52
all want congress to do something

16:54
responsible

16:55
and uh

16:57
there are good arguments on both sides

17:00
of why there are people that need help i

17:02
don't want to say that that's not a good

17:04
argument

17:05
but we have to think about whether what

17:08
we're doing is really helping we just

17:10
need to get our priorities reorganized

17:12
in this country

17:13
um

17:16
just ask yourself

17:17
why is a baseball player a basketball

17:19
player or football player who plays i

17:22
mean it's yeah you get beat up for an

17:23
hour on the football field why are they

17:25
worth multi-million dollar contracts and

17:28
teachers and day care workers

17:31
get nothing

17:33
hey that's a

17:34
another

17:35
type of problem i was i was wanting to

17:37
also get your

17:39
input on the idea that was quickly

17:42
floated

17:43
about minting a trillion dollar coin oh

17:46
for god's sakes did you fall down and

17:49
just like

17:51
yell at the top of your lungs what did

17:52
you do when you heard that and well well

17:55
what i did and i wish i would you have

17:57
known you were going to bring it i have

17:58
a billion dollar

18:01
zimbabwe banknote of course you do okay

18:04
of course i do and now you can buy those

18:06
on ebay if you want exactly that's a

18:07
couple hundred dollars i want a trillion

18:09
dollar coin terry that's what i want and

18:12
then go and then go to publix and publix

18:14
is the local grocery store in florida

18:16
where i live part of the time and go hey

18:19
um i'd like some bread

18:22
exactly because that's exactly what

18:24
it'll be worth a loaf of bread

18:26
you know

18:26
it's a weird thing that congress did

18:28
that i never even noticed 20 years ago

18:30
where they said that congress could min

18:32
any coin of any denomination as long as

18:34
it wasn't minted in gold silver or

18:37
bronze

18:39
so they could mint a coin that came the

18:42
theory came some idiots in washington

18:44
that said

18:45
okay

18:46
we'll just deposit um we'll just pay

18:49
down a trillion dollars worth of debt or

18:51
we'll just

18:52
deposit this into the system

18:55
i saw janet yellen have to answer that

18:57
question

18:59
greatly gosh she's been the fed chairman

19:00
she's treasury secretary she's danced

19:02
political and the economic lines i mean

19:05
she's one of my heroes and i saw her try

19:07
to answer with a straight face uh when

19:10
that was poster on cnbc that morning and

19:12
i yelled at the tv oh just tell them

19:14
they're a bunch of idiots you know

19:16
well you know the po there's politicians

19:18
out there that would love for interest

19:20
rates to go to zero or negative

19:22
so they could print more money to give

19:24
it away

19:26
i mean people always ask me can interest

19:28
rates go down or up or whatever first of

19:30
all no one knows

19:31
um and if they do they're not telling

19:33
anybody but could they go down

19:35
i'm asking you terry savage i will tell

19:38
you that i was at a private dinner this

19:40
is

19:41
way before covet um

19:43
with

19:44
uh jay paul who was not that yet fed

19:47
chairman he was a fed governor

19:49
and

19:50
everybo those all business people but i

19:52
turn into terry the financial journalist

19:54
in a moment like that for asking these

19:56
easy questions and i i asked him i said

19:59
it was remember when

20:01
50 of the european debt central bank

20:03
debt was negative in other words

20:05
europeans were paying the banks to hold

20:07
their money so it's

20:09
negative interest rates are

20:11
a sign of huge deflation and that could

20:13
come only in a global financial collapse

20:16
which was what was happening this is as

20:18
i said some years ago and i said mr

20:21
powell do you think interest rates

20:23
because t-bill rights were down at

20:25
0.08 percent said do you think interest

20:28
rates will go negative

20:30
in the united states

20:32
i will never forget i'm really

20:34
intimidated stan he looked at me with

20:36
those big bushy eyebrows and he looked

20:38
at me and he said

20:40
interest rates will never be negative in

20:42
the united states

20:44
so i kind of cringed a little bit i said

20:46
well thank you sir never say never as

20:49
they always say

20:51
how about this it just it's just a year

20:54
ago i believe

20:55
that oil prices maybe it's more 15

20:57
months ago that oil prices traded

20:59
negative right and yet oil is 80 a

21:02
barrel right today

21:04
because when markets get pushed to

21:07
extremes by

21:09
what's going on in the economy

21:11
markets react only in china don't

21:13
markets react because the government

21:14
controls them this global tax that

21:17
they're floating too i'm sure you're

21:21
not going

21:22
about something i mean i mean but but

21:24
people want to hear you know when i get

21:25
we would did our last podcast you know

21:28
my emails lit up and and everything lit

21:30
up with you know ask her this ask her

21:32
this and they really people my my

21:34
listeners do want to hear your

21:36
your comments on on pop culture type

21:39
items and political items and that's

21:41
when that was just floated they're

21:42
talking about a global tax

21:45
as a small business owner um you know i

21:47
look at that and go i'm just not sure we

21:49
can take more taxation

21:52
maybe we can maybe we can't but global

21:54
tax seems to me as a as a rabbit hole

21:57
what do you think

21:58
i i haven't

21:59
i'm sorry to say i haven't read about a

22:01
global text i don't know who would love

22:03
you that but i think what there's a lot

22:04
of discussion about is talking about it

22:07
comparative tax rates and why on earth

22:09
we would want to raise the taxes on u.s

22:11
businesses

22:13
to be among the highest in the developed

22:15
world which just only puts our

22:17
businesses at a disadvantage now they're

22:19
actually floating a global tax i don't

22:21
know who would who would who would grab

22:23
it but you know it's it's it's just a

22:25
very fancy form of wealth distribution

22:28
um that's going on

22:30
um but it's interesting

22:33
to watch the first year of this

22:35
administration and i'm not political in

22:37
any way i'm pure capitalist period

22:40
um but doesn't it seem like we're

22:43
spiraling a little bit downward doesn't

22:45
it seem just a tad bit chaotic to you

22:47
because you've seen it all been there

22:49
forgotten more than most people will

22:51
ever know

22:52
you just you know i don't see my hair

22:53
colored again you can't see the grays

22:55
but look stan

22:57
one of the earliest lessons in

22:58
capitalism i remember the man who taught

23:01
it to me i remember the moment i heard

23:03
it and i've carried this thought with me

23:06
uh he said yes

23:09
capitalism is the unequal distribution

23:13
of wealth

23:14
but socialism

23:16
is the equal distribution of poverty

23:20
so we have seen at least

23:23
my generation

23:25
remembers in the old soviet union people

23:27
standing in line for hours for bread or

23:29
a chicken

23:30
cuba

23:32
look what socialism has done in cuba

23:35
china started growing because they let

23:37
their people who haven't

23:39
been told an innate capitalistic tenancy

23:41
over 2 000 years go ahead and be

23:43
capitalist but now they want to

23:45
socialize and equalize everything again

23:48
if we only studied history

23:51
we would learn i i think

23:53
it you know it's not political

23:56
here's another lesson i learned

24:00
a rising tide raises all ships and you

24:03
know who said that

24:05
john f kennedy he was a democrat

24:08
he was the one that put in the kennedy

24:09
round of tax cuts he cut the top tax

24:11
rate from over 90

24:14
to just to 52

24:17
the kennedy round of tariff cuts

24:19
he was the one who said paradoxically

24:23
cutting tax rates

24:25
increases tax revenues

24:28
anybody who doesn't remember you all

24:30
remember but tell your kids kennedy was

24:31
a democrat it wasn't a political thing

24:34
it was an idea that people don't work to

24:37
pay taxes they work to keep an after tax

24:39
return

24:40
so the whole idea that we've lost the

24:43
sense that people don't work to serve

24:45
the government except in places like

24:47
cuba the old soviet union again again in

24:49
china now probably and that really

24:52
destroys an economy so if we want to

24:53
create wealth

24:54
and uplift people we have to have a

24:56
growing economy and taxing incentives

24:59
away will not do that

25:01
that's i mean you may disagree with me

25:04
and i totally agree i totally agree with

25:06
you i mean you out there may disagree

25:08
but i know that ruin history says it's

25:11
true you you can't

25:13
legis legislate equality

25:16
um when business owners are taking risks

25:19
that other people aren't taking there

25:21
needs to be a reward system for that

25:23
which leads us to our friends in dc and

25:25
um it's political silly season obviously

25:30
how how can they

25:32
i literally thought when when the the

25:34
change of uh administrations i thought

25:36
they were walking it even though covet

25:38
is was kind of work its way through

25:41
i thought that that the economy

25:44
would be a non-stop juggernaut how have

25:48
the politicians both parties have they

25:51
screwed this thing up

25:55
well and i want to make clear i do

25:56
believe it's both parties oh absolutely

25:58
they've

26:00
i'm astounded

26:02
at how

26:04
how little they care about the country

26:07
how much untruth they believe

26:10
on both extremes and whether you're

26:12
talking about covet or taxes or whatever

26:15
they're we seem to have taken leave of a

26:18
of historical perspective

26:20
and common sense in washington and

26:23
that's scary but as my other friend

26:25
warren buffett always said you know

26:26
nobody got rich betting against america

26:28
and by the way if you don't believe that

26:30
if you don't believe that she knows

26:32
warren buffett go to her site and watch

26:34
the video with her and warren buffett so

26:36
she wouldn't just she didn't just drop

26:38
that name this is legit

26:40
well i keep that up there because i

26:41
think that that video was done in the

26:44
middle of the financial crisis

26:46
i interviewed him at uh a charity

26:48
benefit where people paid a lot of money

26:50
sure and i and and

26:52
it was the worst time i mean it was back

26:54
in 2008 it's you'll see what i look like

26:56
10 years ago and and the thing is

26:59
um

27:00
he was so optimistic then and everybody

27:03
was so pessimistic because that's when

27:05
the banking system and people were

27:06
losing their houses they were producing

27:08
for goodness sakes today let's think

27:10
about how quickly things move a decade

27:13
ago in the financial crisis the mortgage

27:15
crisis and so forth the banks were

27:17
failing

27:18
you know they were being taken over the

27:20
government was trying to help them out

27:21
general motors was on the brink and we

27:24
were bulldozing houses empty houses in

27:26
california today we don't have enough of

27:28
a supply of houses

27:30
a perspective is really important but we

27:33
we right at our ship and then along came

27:35
prophet

27:36
and i think we will

27:38
i i hope that what we're seeing is such

27:39
an extreme of idiocy in washington that

27:42
the heart of america rises up and says

27:44
stop it you silly kids

27:46
this is our election and voters

27:48
typically do that if they if if

27:51
yeah the pendulum swings

27:53
you know far right or far left they

27:54
always grab the pendulum and say whoa

27:56
stop there for a second um but maybe not

28:00
maybe this time it swings left and stays

28:03
left because people you know i read the

28:05
other day where over 4 million people

28:06
you know kind of quit their jobs and

28:08
said hey i don't want to do this now

28:10
there's arguments for on both sides that

28:12
hey wages might not be high enough or

28:14
the argument on the other side is if you

28:16
pay people more than they make it work

28:17
they're not going to work you know on a

28:19
welfare

28:20
where do you land on all of that and do

28:22
you think this is actually

28:23
can it can it be looked at glass half

28:25
full or is this glass half empty with 4

28:27
million people saying i don't want to

28:28
work well this is a very interesting

28:31
moment as i uh after labor day we

28:34
embarked on a really great social

28:36
experiment and the jury's out on it we

28:38
said all the people that were

28:40
self-employed will stop getting

28:42
unemployment benefits that's when that

28:44
ended the pua plan

28:46
pandemic unemployment assistance uh all

28:48
the extra money that people got and

28:50
unemployment by itself is relatively low

28:53
in every state but that extra 300 a week

28:55
and before that it was 600 a week

28:57
remember um that we paid out certainly

29:01
you know that which you tax you get less

29:03
of that which you incent you get more of

29:05
and and we not only help people who are

29:08
needy but we incented them not to go

29:10
back to work and not to mention

29:13
there's still so much covet in the delta

29:15
variant out there that people are

29:17
legitimately afraid

29:19
to go back to work in the service jobs

29:21
where they meet people face to face so a

29:24
as we get a handle on the pandemic maybe

29:26
that maybe with boosters or whatever it

29:27
takes and b as people are not getting

29:30
the benefits

29:32
there are jobs open

29:34
and the question is what have we done to

29:35
the american psyche

29:36
that people are not willing to do those

29:39
basic jobs and of course

29:41
400 you know our history is replete with

29:43
periods of extremes but what happened

29:47
typically is we had a lot of immigration

29:50
and those were the people around the

29:52
gilded age around in the 1880s 1890s

29:55
they came to america to do the basic

29:57
they were horrible jobs they were

29:59
sweatshirt

30:00
jobs and for young girls sewing and

30:03
being maids and

30:04
and the world's worst jobs but people

30:06
came to america because they knew they

30:08
could make a better life for their

30:09
children we've closed pretty much the

30:11
doors on immigration

30:13
and um so we're now seeing

30:16
that the people who are here

30:18
are not willing to do those jobs we're

30:20
not very interesting social experiment

30:22
i'm fascinated as a

30:24
economic historian of sorts to to look

30:26
and see what develops it is interesting

30:28
to watch i have a theory that the phrase

30:30
labor day

30:32
will be deemed hate speech and we will

30:34
no longer celebrate that anymore because

30:36
it's offensive i'm not kidding and as as

30:38
stupid as that sounds i want you to

30:40
think logically through that

30:42
because

30:43
um

30:44
it's kind of crazy where we're at right

30:46
now where

30:47
we've all had jobs where we didn't like

30:49
it and we had to pay our dues and i'm

30:51
just not sure we're in a society now

30:53
that that feels like they have to now

30:56
when coveted hit it made us realize the

30:58
fragility of of life and and the fact

31:01
that over 700 000 people in this country

31:03
alone have passed away due to whether

31:05
you believe that's a true number or not

31:07
then then if you don't believe that's

31:09
true then

31:10
let's just say it's 300 that's still a

31:12
lot the point is it made people kind of

31:15
do some self-reflection and say hey you

31:18
know what do i want to do the problem is

31:19
that not everybody can be a sculptor or

31:22
a painter or a guitar player a lawyer

31:25
from doing it on zoom or a professional

31:28
and that's the that's where the jobs are

31:30
open

31:31
you want to go out to a great restaurant

31:33
restaurants are open

31:34
but they're only half full but you can't

31:36
get a table because they don't have

31:38
enough cooks or white staff to serve you

31:40
so as i said we're going through a

31:42
really

31:43
a great reorganization of priorities in

31:47
america

31:50
oh that was uh was that warren buffett

31:51
tried to call you right there was that

31:54
actually

31:56
hey terry when you turn on the

31:57
television

31:59
and you see 60 to 80 ships in the los

32:02
angeles port

32:05
what do you think

32:07
i think the president did a great job i

32:09
think someone needs to step up and those

32:11
are you know there are areas that are

32:13
really important for government i think

32:14
to be involved

32:16
and one of those is certainly

32:18
that the safety the the national

32:21
interests

32:22
and i think it's definitely in the

32:24
national interest for

32:25
um for a government to step in

32:28
and deal with national kinds of problems

32:32
so it's not just war

32:34
uh

32:34
national defense i i i was really proud

32:37
that they noticed well i i agree with

32:40
what what the president said which is

32:42
maybe we need to go 24 7 3 24 7 on the

32:45
shipping companies the to to do this

32:48
bottleneck the only problem with that

32:50
thought is they still can't hire people

32:51
to go and drive the trucks i i read an

32:54
article today where they're actually

32:55
thinking about having 18 year olds

32:58
be able to drive long-haul trucks which

33:00
means that i will never drive again

33:02
on the road terry that's all it means i

33:05
know i heard that and i was riding i was

33:08
on the highway this morning actually but

33:10
there were a lot of trucks and i started

33:12
thinking you better stay out of the way

33:13
what if these are some of the amateurs

33:15
that they're hanging again

33:17
it's a question of priorities i mean we

33:20
have tv stars we have media stars

33:23
we have uh athletes

33:26
who that's not going to change terry

33:27
that's like wishing that all of us had

33:29
six-pack ab muscles

33:31
it's just not going to happen yeah the

33:33
priorities from the standpoint of that i

33:35
mean it's just i mean those people

33:36
always going to get overpaid for

33:38
whatever reason because it's

33:39
entertainment entertainment is is skewed

33:42
against the reality of we need to pay

33:45
teachers more i agree with you but

33:47
i don't think that's ever going to

33:48
change or maybe sports or what are those

33:51
things go in cycles

33:53
um

33:54
maybe but i haven't seen any indication

33:56
of that coming up anytime soon

33:58
no it's it's very american it is very

34:00
american it's just that um

34:03
we're seeing the results

34:06
of our priorities now obviously do you

34:08
have to share some of the texts or

34:10
emails you get as a result of this

34:11
discussion because i don't have an

34:13
answer for that

34:15
but i know

34:16
that

34:18
it's a problem that's impacting our

34:20
society now and whether it's truck

34:22
drivers because they get us our food or

34:24
the frontline staff that you know

34:26
walmart or whatever it might be or

34:28
whether it's the teachers i mean

34:31
i think america's having sort of a day

34:33
of reckoning here

34:35
and the only answer to that is growth

34:37
the absolute only answer to that we we

34:40
cannot divide our way out of the

34:42
problems

34:43
by cutting up the pie

34:45
and distributing the crumbs i i firmly

34:48
believe that the real answer to our

34:50
economic problems is economic growth

34:52
raising taxes does not give you economic

34:55
growth i agree and i and i think that

34:57
we're going to find out

34:59
how

35:00
important and most people know this

35:02
already but a lot of people don't how

35:04
important truck drivers are

35:06
i'm telling you right now

35:08
those people

35:10
make this whole thing happen now and i

35:12
know that there's technology there's

35:14
driverless trucks and they're trying to

35:15
figure out how to do this long term but

35:18
if it wasn't for the truck drivers it's

35:20
not happening out there period

35:23
and we got to get roads too and bridges

35:25
that are safe

35:26
so here you go

35:28
agreed um which frustrates me when i

35:30
hear you know

35:32
there's infrastructure bills that should

35:34
go through because we need better roads

35:35
and bridges and i think um

35:37
those are important and then i hear the

35:38
words human infrastructure

35:41
which drives me crazy

35:43
um

35:44
but do you think and you know this this

35:47
will definitely air

35:48
before this podcast will air before um

35:51
you know dc makes a decision but do you

35:54
predict

35:55
a long long time

35:56
do you think they're going to get

35:57
something

35:58
done on the inf the true infrastructure

36:00
bill which i think is needed i think

36:02
everybody in the country says yeah if

36:04
we're going to spend money let's spend

36:05
money there you think they'll at least

36:07
do that

36:09
stan you got to get someone who

36:11
handicaps politics i'm i'm as frustrated

36:14
as any average american and i don't have

36:16
any insight to that i never would have

36:18
believed

36:20
some of the things that are happening

36:21
that have happened in the last couple of

36:23
years or more out of washington

36:25
and i don't you know i i hope we don't

36:27
need a bigger crisis

36:30
to to shake washington up i

36:33
i'm like everyone else you you go get

36:36
both sides to argue this out nobody else

36:38
seems to be able to make headway

36:41
yeah the polarization of the countries

36:43
is bad um

36:45
to say the least

36:47
um

36:47
getting back to the markets um

36:51
you know we've been around a while and

36:52
we remember the dot-com era where there

36:55
were uh companies that were going public

36:57
that had no value and you know they were

36:59
going from 12 to 70 in one day i was

37:02
there i was part of with morgan stanley

37:04
we were part of a lot of those

37:06
underwritings and and i was part of that

37:08
group that was in charge of a lot of

37:10
that in in my region

37:13
and it was crazy is there a

37:15
an eerie feeling the same thing when you

37:17
hear about people margining crypto to

37:20
buy crypto

37:23
well

37:24
you know uh here's another old savage

37:26
truth my book is the savage truth on

37:28
money and and

37:30
it's great for your kids

37:32
it's a great read for all levels period

37:35
long-term care insurance and all those

37:37
sure i don't love very much anymore i i

37:39
do

37:40
television regularly in chicago i on

37:43
radio and wgn tv and radio and

37:47
and i have a syndicated column that runs

37:49
every week so i'm always out there

37:50
talking to what i call regular people

37:52
and you're i'm not giving you the most

37:55
sophisticated stuff but i've been around

37:57
the markets for a long long time i was a

37:59
founding member of the chicago board

38:01
options exchange the first woman trader

38:03
that's how i knew i wasn't a good trader

38:04
not a bad investor

38:06
but not a good trader and so

38:09
you know i look at

38:11
at the markets from a historical

38:13
perspective

38:14
i know i'll give you something i lived

38:17
through

38:18
from night from

38:19
1971 to the dow jones made its high of

38:23
over a thousand

38:24
until 1982 and i was a young stockbroker

38:28
then and then a trader on the options

38:30
exchange which opened in 73.

38:32
not until august of 82 when nixon closed

38:35
the gold window did the dow go over a

38:37
thousand we had a 10-year decade of the

38:39
dow trading under a thousand

38:43
and then i remember distinctly in 1998

38:46
99 saying this is insane there's a great

38:49
chart market capitalization compared to

38:51
gdp this is a chart that was off the

38:54
charts i spent a lot of time speaking to

38:55
corporate audiences and they asked me to

38:58
talk about their 401k plans and i was

39:00
warning people for three years i look

39:02
like such a stupid person because the

39:04
market was going up and going up and my

39:06
chart was going farther off the chart

39:08
and so here's an old savage truth the

39:10
market can stay irrational a lot longer

39:13
than you could stay solvent

39:16
don't fight the market

39:18
allocate to the market and then get out

39:20
of the way

39:22
of trying to decide when enough is

39:24
enough the market will decide when

39:26
enough is enough

39:27
so i

39:29
you know yes there's a lot of craziness

39:31
going on

39:32
but people

39:33
you know it's not your audience you

39:35
defined it but every one of you out

39:37
there if you have a son or daughter in

39:38
their 30s or 40s or 20s probably

39:42
that you should be so excited oh my god

39:44
my son likes my son's an investment

39:47
professional he's older than that but i

39:48
mean these young people oh great they're

39:51
trading at robinhood good they're

39:52
learning how to invest no

39:54
they're doing fantasy football on the

39:57
weekends and they're doing robinhood in

40:00
the middle of the week and it's nothing

40:01
to do with price earnings ratios or cash

40:04
flow models or dividend yields

40:06
whatever so here's the whole thing

40:09
there's a whole piece of the people in

40:12
this boat

40:13
that are

40:15
they're not playing with with the same

40:17
oars they're not rowing with the same

40:19
ores you're rowing with

40:20
and they're going to jump up and down

40:22
and rock the boat while you're sitting

40:24
there going oh i've got my long-term

40:25
investment plan

40:27
they're rocking the boat in ways that

40:28
are unpredictable especially when waves

40:31
come along so you just got to worry

40:33
about yourself right now you've got to

40:35
diversify you must think about your

40:38
future liquidity needs so that you're

40:40
not forced to sell when and if there's a

40:42
huge market decline and you can't tell

40:45
these people they're crazy the market

40:47
will let them know they're all going to

40:49
get a lesson the market always does the

40:52
most unexpected thing it teaches most

40:54
people the greatest lesson

40:56
it will flush them out for sure yeah

40:58
good judgment comes from experience and

41:00
experience comes from bad judgment

41:04
yeah that's good i'm gonna i'm gonna

41:06
date myself a little bit here but you'll

41:07
understand what i'm gonna say when i

41:09
first started in the stock brokers

41:10
business that's what it was called and

41:12
you someone bought a stock you wrote it

41:14
down on a piece of paper you put in a

41:16
vacuum tube the vacuum tube went to the

41:18
the desk the desk inputted the order

41:20
that's how old i am

41:22
well so i said absolutely but let me let

41:25
me finish with my thought there at this

41:28
point in time at the time of this taping

41:31
depending on who's doing the stats over

41:33
80 percent

41:35
of all

41:36
trades

41:37
are done by non-human algorithmic black

41:41
box high velocity 24 7

41:44
computers

41:45
that's a change from when

41:47
me and you were first starting in the

41:49
business

41:51
what is your opinion on

41:53
the technology aspect

41:56
affecting markets

41:58
in a good and or bad way

42:00
well actually i think markets are in a

42:03
way a lot less volatile because there is

42:07
so much volume and it's trading on both

42:11
sides of the market don't forget when

42:12
you and i started out there was a

42:14
specialist on the floor of the new york

42:15
stock exchange

42:16
a lot of money you wouldn't sell you

42:18
know so the gaps were wider we're in

42:21
decimals now instead of quarters and

42:23
sixteenths that's narrowed the spread

42:25
and i i think actually the markets the

42:27
technology has really improved liquidity

42:30
and allowed for better raising of

42:32
capital in the olden days you have to go

42:34
to merrill lynch or dean witter or sure

42:37
happy morgan or

42:39
goldman sachs or whatever to sell stock

42:41
to the public

42:42
now companies can

42:44
sell stock directly on the exchange i

42:47
think technology has been truly enabling

42:49
and i think

42:50
fintech um the whole fintech sector of

42:53
the market i've written stories for the

42:55
last decade about companies that are

42:57
doing everything from refinancing your

42:58
student loans to allowing you to buy

43:01
pennies of you know stockpile.com lets

43:03
you buy penny share you know

43:06
a dollar's worth of shares for your

43:07
grandchild

43:09
the fact technology has improved the

43:12
efficiency of the markets has dim to the

43:14
volatility of the markets and only when

43:17
human nature takes over

43:19
when human nature takes over like you

43:20
saw in the run-up of the mean stocks

43:22
earlier this year sure

43:24
but the market's not bigger than human

43:26
nature human nature can push the market

43:28
to extremes and then the market gets you

43:30
back it always gets you back i believe

43:32
that

43:34
i think that's

43:35
that's a very interesting take on it

43:37
because i think people get scared

43:39
sometimes of the institutional sways

43:42
in the markets and just big money

43:44
driving things and they feel like

43:46
they're

43:47
surfing beside a cruise ship

43:49
and they don't want to get sucked under

43:50
the boat and they want to catch the wave

43:52
if they can which leads back to your

43:54
initial thought about you have to be

43:56
disciplined you do have to to to look at

43:59
the long term and i know that sounds

44:00
cliche to people out there but i think

44:03
it's important for someone like terry

44:04
savage to say that's actually it

44:06
that's actually the secret sauce

44:09
to this whole thing uh because you know

44:11
i was around also with you when day

44:13
trading was it and everyone tried to day

44:15
trade and i went okay that's not gonna

44:16
work

44:17
i mean that's that's gonna that's gonna

44:20
be a mess

44:22
what's your prediction

44:25
technology wise or do you have any for

44:27
where the markets are going or or how

44:30
people are able to interact

44:33
and buy things from an investment

44:35
standpoint are you a fan of some of the

44:38
some of the the things that are popping

44:40
up like the i'm sure you're not a fan of

44:42
the family offices and those things but

44:44
i used to call them holding companies

44:46
they have an acronym for them now that

44:48
are popping up do you like what's

44:49
happening with some of the pools of

44:51
money that's out there that's doing some

44:53
shadow investing

44:56
i did wait you threw a whole lot of

44:57
dirty words off of course of course i

44:59
did that's what i do

45:01
that's such a grab bag on such a beef

45:03
stew of of

45:06
hey first of all

45:07
it doesn't matter how the buyers and

45:09
sellers are organized they have their

45:11
opinions they buy it they sell family

45:13
offices are just simply a way for very

45:15
wealthy people to manage their money and

45:17
they invest in the stock market or in

45:19
venture capital the only problem with

45:20
that is they don't have to this current

45:22
time of the taping they don't have to

45:24
disclose a lot of their holdings which

45:27
main firms do that's that's just a

45:29
asterisk missed savage that we need

45:32
that's a small little piece of the

45:33
market look here's what i know i've been

45:36
around the markets for a long long time

45:38
now i've been around traders i made a

45:40
quip earlier but i really mean this i

45:43
was literally down there on the trading

45:45
floor

45:46
in the olden days when this cboe first

45:49
opened up as i was the first woman

45:51
trader and um

45:53
and i they had these guys on the in the

45:56
booths with headsets on to new york and

45:59
i went wait what they're buying 10 000

46:01
of this how do they know do they know

46:03
what's happening in new york on the

46:04
exchange that a block is going to cross

46:06
of ibm or whatever those stocks those

46:08
days digital equipment was a high-tech

46:10
stock

46:11
and not only that i was the most even

46:14
trade i'd buy 10 of these because that

46:15
was a good idea and i'm a little

46:16
concerned i'll sell 10 of those i'll buy

46:18
15 of this pretty soon i had a big

46:20
portfolio and it was equally balanced

46:22
i'm i think there's a gene i walked

46:24
around interviewing people on the old

46:27
trading floors to see if i could

46:28
discover i'm heck i'm married a trader

46:31
and i have a son and i sent him down to

46:34
the trading floor to work as a clerk one

46:36
one summer figuring if he was really a

46:38
trader like his father

46:40
i wouldn't have to pay for college

46:42
now he's a great and highly respected

46:45
investment professional today i'm never

46:47
allowed to talk about him as firm or

46:48
what he does but the fact is i think

46:50
trading is a gene

46:52
or else it's an addiction and you

46:55
know people they're probably younger

46:57
than you if you're sitting here watching

46:59
this podcast who are really making money

47:01
and you're going why didn't i buy

47:02
bitcoin at 600.

47:04
i told people not to buy it at 600 not

47:06
because it wasn't a good idea but

47:07
because i was afraid it was just a way

47:09
to steal your money that these wallets

47:11
you know you'd forget your access or

47:13
someone would steal it

47:15
so i'm not a trader

47:17
if you want trading advice tune in cnbc

47:20
all day long

47:22
let me see i keep it on it's a wallpaper

47:24
background i mainly look around to see

47:26
what's going on what's the trend

47:28
decide who you are

47:30
know yourself by this time if you're

47:32
listening to this podcast you should

47:34
know yourself

47:36
and then

47:37
understand the place in history where

47:39
we're at right now and the risks to the

47:40
upside and the downside well the place

47:43
we're at right now that's a good that's

47:44
a good segue to my next question

47:47
where we're at right now does this

47:49
remind you of of a specific moment in

47:52
time in the past as you've looked at

47:54
markets and investing or are we at what

47:57
i call blue water which is we've never

47:59
seen it before and this is new

48:02
it's always new stand

48:04
it's always a mistake you mean to look

48:06
back that's not the direction you're

48:08
going you're supposed to learn something

48:11
by

48:12
feeling the waves of history that lead

48:15
to

48:16
extremes on the downside extremes on the

48:18
upside but it's never just the same it's

48:22
always blue water if it weren't there be

48:24
somebody who could give you answers so

48:26
what you have to do you know you have to

48:28
sort of balance yourself and say if this

48:30
happens i'll be really glad i had this

48:33
if that happens i wish i had more of

48:34
that

48:36
that's the only way i know if you want

48:38
to put it all on the line go be a

48:40
traitor it's it's it wasn't my thrill

48:43
and i i now prove to myself i'll tell

48:46
you something i did i mentioned this

48:48
where did i do this for oh

48:50
you know by the way i do a podcast not

48:52
at all like yours with pam krueger of

48:54
wealth ramp and um uh and richard

48:58
eisenberg of pbs's next avenue it's

49:00
called friends talk money you can

49:02
look for friends talk money or go to

49:03
fred's talkmoney.org and we're talking

49:06
about balancing things out so i started

49:10
when they first opened up iras and you

49:12
could put two thousand dollars in i

49:14
opened an ira in a cd

49:16
at the same time i put an ira in an

49:19
index fund and i remember saying yeah

49:22
but the market's going down i'm gonna i

49:24
need some chicken money and it turned

49:27
out that all the projections in my book

49:29
about what two thousand dollars would

49:31
grow to with an average return of 10.1

49:33
percent which has always been the

49:35
historical average return of the stock

49:36
market i just that ira is still sitting

49:40
in my chase account i just always gave

49:42
instructions roll it over so it rolls

49:43
over now at like three hundredths of a

49:45
percent

49:46
it's worth about 7 500

49:49
whereas the i went and did the numbers

49:51
for the stock market because i've had

49:53
lots of different investments and funds

49:55
over the time that same amount of money

49:57
would have been over 58 000 real just

50:00
based on the on the cash value of the

50:03
dow

50:05
you can't be all in chicken money you

50:07
have to believe in the future of america

50:09
if you don't believe in the future of

50:10
america then don't bother investing go

50:11
somewhere else

50:13
no i agree i agree with that terry

50:15
savage you're one of my favorite people

50:17
on the planet

50:18
and i'm so glad that you joined us um

50:21
for the fun with annuities any last

50:23
words as i always like to have my

50:25
celebrity guest

50:27
give kind of the the closing mantra

50:30
as you get in your learjet and and zip

50:32
off to the swiss alps

50:37
and

50:38
i'm i'm gonna give two closing things

50:41
okay first one

50:43
is you've had all my profundities

50:46
nobody knows for sure don't feel bad

50:48
that someone else is getting making a

50:49
lot of money in cryptos and someone else

50:51
has been trading amc the movie theaters

50:53
you know what if you don't want to go

50:55
back to the movies i don't get why those

50:57
stocks should be soaring but that's

50:58
you're never going to beat the market i

51:01
just go to terry savage.com i just

51:03
posted a column by the time he says that

51:05
maybe a week or two old

51:06
you don't have to beat the market s p

51:09
dow jones indus

51:11
indexes keep a score card

51:13
and the score card is how many

51:16
professional money managers of mutual

51:18
funds the kind that you get to choose

51:20
from have beat their benchmark indexes

51:23
and it's like in the last year 70

51:25
percent of the large cap the small cap

51:28
the mid cap

51:29
they've all failed to beat

51:32
their benchmark market indexes

51:34
you don't have to beat the market you

51:36
just have to be the market and over the

51:38
long run

51:39
you will come out ahead so that's a

51:41
savage troop i was just going to say you

51:43
stole my line i was going to end that

51:45
with that is

51:47
the savage truth and it actually is

51:50
terry thank you so much for being on fun

51:52
with annuities i want to thank everybody

51:54
for joining us and i will see you next

51:57
week

52:02
thanks for listening to fun with

52:04
annuities please hit the subscribe

52:06
button and make sure to go to my site at

52:08
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52:09
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52:11
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52:31
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52:34
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52:36
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52:39
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52:42
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52:46
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52:52
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52:56
[Music]

53:06
you