Iran War: What It Means for Your Money

0:00Good Monday afternoon to you. Welcome to the John Sanchez show one new stock seven 80 K, which pleasure to be with you on this. Wild ride of a Monday. I should say wild ride over the last what 72 hours. I'm glad to be with you and explain what the heck's going on. Hope you had a great weekend. Tense weekend. No doubt about it. I, you know, I don't care what side of the aisle you may be on, whether you're an investor or not. As an American, when you see missiles flying and you know that we're involved, it basically, it makes your stomach churn a little bit. I mean, let's be honest about it. With that news broke on Saturday that the missiles were flying and we're now, you know, quote, at war. Makes everybody nervous. And again, it doesn't matter whether you have any in the market or not. This is part of being American. So let's kind of fast forward as to where we sit. We go through the weekend, missiles launched on Saturday. Obviously, there's no after hours trading on Saturday. Future start trading yesterday Sunday at three o'clock. And of course, they're down. No surprise.

1:01But I tell you, I got a bit of a relief yesterday. As I was watching them very, very closely. And, you know, since the beginning to plot out the strategy for our portfolios come today. And I got a bit of a relief. And that bit of relief was this. We were holding right around that negative 500 mark between 500 to 580 right around there. And I went back and I did a study. And I wanted to see, I couldn't remember how the market performed in the 12-day Iran war. Now, remember, that was last year. It seemed like it was longer than that. June 13th is when we initiated the bombing of the nuclear sites in Iran. And I wanted to see how did the market perform the day of trading, right? June 13th. Well, lo and behold, it finished down about 500 and some change. As I said, hmm, there's a little similarity there. The way the algorithms are set up, etc. That

2:02seems to be the soft area, not down six, not down seven, not down a thousand, which is human nature to think that that would happen. So that gave me again a bit of reprieve. It slept pretty good last night, got up at three o'clock this morning, started tracking things, watching things closely, and sure enough, where were we down that 500 range? I'm going back to my note. So my first stock update this morning at 523 down 503. Next report at 553 down 530. Last report right before the market opened down 585 on the Dow futures. So once again, look like, okay, we're doing what we should be doing. Not panicking. Everyone's kind of taking a deep breath to wait and see what happens. Algorithms aren't going crazy. Oil prices, they were up. I think I think the best level that I saw between yesterday and today, oil was up almost six dollars. And Lord knows we did not close their thing, Guinness. So it looked like calmer heads were going to prevail. Now, the other thing that I noticed is obviously the missile attack occurred. Number one, that was unusual. It roughly 10 o'clock

3:10in the morning, Iranian time. Usually that doesn't happen. Usually it's at night. And all that the war experts explain why they had some rationale. That was asked of them and some of the press conferences and things today. The other thing, of course, it happens on a weekend. And they do that on purpose. Unless there's some real reason, urgent reason, which, you know, killing the Ayatollah, they said the timing was they had to do it. It was absolutely perfect because where he was and his generals and things like that. So they do it on a Saturday. So that, obviously, you're not doing it in the middle of a market hour market day. And you have that reaction. We probably could easily fall a thousand points. If we were sitting here and all of a sudden, you know, we get that news that the missiles are flying and we're now at war. Obviously, it's going to be a major reaction. It's one of those situations where the market goes, all right, we're going to sell everything in the last questions later. So that was again, a bit of another positive there. So once again, it looked like calmer heads would prevail. Market opens up. We dip a little bit worse level today. We were down just about 687 points from the highs to the

4:12lows of the day. Again, we're not even talking 2%. So calmer heads prevailed. Now, did we have a lot of intermittent periods where the market wasn't quite sure what it wanted to do, what investors wanted to do, how the algorithms were, were basically programmed of what to do. Absolutely, we did. There was some massive buy and sell orders and all the major averages today. Next thing that I did, watch the bond market. Now, the bond market folks was one of the most puzzling situations for investors to figure out today. And I want to tell you why I say that because if you look at it on the surface, you're going to scratch your head and go, wait a minute here. This makes absolutely no sense. Okay, so let's set the table. You all know that, of course, the way the bond market works, the basic fundamentals of the bond market is very simple. It's a teeter totter, right? If you're watching me on YouTube right now, I got my pin. I got a teeter totter. One side of a teeter totter goes up. The other side of the teeter totter goes down.

5:13So one side is the bond price. Let's say $1,000. And let's say that's the left side of the pin. The right side of the pin is the bond yield. And let's say that's, I don't know, right around whatever, 4%. Okay, hour by hour a day by day, minute by minute, second by second, bonds are going up and down. Well, again, a teeter totter. One side goes up. One side goes down. So when you get into a war situation, of course, you get what's called flight to quality. That means investors liquidate their stock holdings, liquidate anything that they think is risky. Cryptocurrency, anything that they think is at risk. And what do they do? I'm talking on the institutional side. They redeploy the capital into the bonds. So once again, my bond price is on the left side of the pin. So they come and they start buying the bonds. Bond price goes up, which should happen to the yield. It should go down. That didn't happen today. Not one bit. Matter of fact, we finished up nine basis points on the 10 year treasury today to a yield of 405. The two year was up 11 basis points. The five year was up 11 basis points. Even the 30 year was

6:14up seven basis points. So what happened? And this is where things got a little tricky today. Because we should have seen just the opposite. We should have seen bond yields tumble today. Again, come in by the bonds, drive the yields down. And so what happened? They liquidated the bonds and drove the yields up. So what was what was this telling us? Two factors happened to this. Number one, they were they meaning traders around the world, not just here in the US, but around the world were buying the US dollar, right? You can give me all the BS that you want about cryptocurrencies ahead against this. And it's a safe play and on and all the stupid reasons for cryptocurrency, in my opinion. But when it comes down to times like this, where missiles are flying, you can't be the safety of the United States dollar. And so once again, what we saw happened, traders around the world piled into the US dollar. Well, where did they get that capital to do that? Where they got the capital was out of the bond

7:18market. So they sold their bonds, driving the yields up, took that capital, the proceeds from the bond sales, put it into the dollar. And now we have higher yields, just the opposite again, what we thought would happen. The other factor, in my opinion, that the reason that they dumped the bonds today was because inflation. So as I continue my topic here, I ran war with this means for your money. Let's go into the inflationary side. But before we talk about inflation, we've got to talk about oil prices, right? Obviously, this is a major, major oil situation. So on the oil side, a quick reminder to all of you, when inflation is calculated, predominantly CPI, the consumer price index, the measure of inflation on the retail side, remember a very large component of the calculation of CPI are oil prices. Now, obviously, we see oil moving up,

8:20finished up, 471, 23, nothing major. Like I said, not nearly that six dollars that we saw over the weekend. So oil prices go up. If you are a bond trader, that's a panic sign to you. Why? Well, first of all, we're going to discuss throughout the shows. We lay out what you need to be doing as far as your strategies right now. If you're a bond trader or an equity trader, actually, let me back out, if you're a bond trader specifically, forget about equity for a second, if you're a bond trader and you own hundreds of millions of dollars of bonds, if you are fearful that inflation is going to become a major issue, the last thing you want to do is own bonds. So let's go back to oil, oil prices rise. We don't know how long this war is going to last. We don't know what kind of disruption we're going to see in oil prices. We'll talk about straight of hormones and some scenarios there in a little bit. So therefore, if I don't know where oil is going to stop on the upside, it could go so long that when they go to do the February

9:26CPI calculation, I'm sorry, the March CPI calculation oil prices are high. That means the input into that formula for CPI is high, which means CPI is high. Higher inflation, bad for bonds, right? You never, you all know that. You never want to own bonds in a high inflationary environment. Inflation eats away that yield that the bond is paying you. So that was the other issue going on. As these traders are like, wait a minute here. We don't know what's going to happen with oil. We're hearing all these different stories. Let's get out of the bonds because of oil prices remain higher. Inflation is going to go higher. My bond price is going to tumble. Get me out. So that was one of the other really bizarre things that we saw today was yields going up stock market. Nice and calm. No craziness going on. No major flight to quality. I think we got out of this day. Thank our lucky stars because it was a day that could have gone, obviously, a lot of different directions. But the other thing that I'll be talking about is

10:29the market, the little engine that could, right? I mentioned this to Ross Mitchell this morning in one of my stock updates. I said, you know, in my 36 years of doing this, what I have witnessed a lot, I mean, going back to all the major Gulf Wars, etc, is there's sent, there tends to be a sense of patriotism. And I may be completely wrong. This is maybe my get feeling, but I see it over and over again, whatever we get into these conflicts, there seems to be a sense of patriotism among investors from the standpoint that you know what we're not going to be. We are the United States of America. We are the world leader. We're not going to be bullied. We're not definitely not going to let our economy, our stock market, our economic engine go down the twos because of some crazy people on the other side of the world. So a little bit of patriotism people stepped in. They start buying stocks. I told you the story after when the markets opened up after 9, 11, I went on the radio show. I was in Baker's sold at the time. I went on the radio show and that's when, you know, we would earn a commission

11:32when we bought our sold a stock for a client. And I went on the radio and I said, you know, I forget the number. I think the first 100 people that want to buy a stock, I don't give you want to buy one share or a thousand shares, I'm waving my commission cost. My phone's lit up. That's that patriotism. Now, of course, that was a little bit different with it being 9, 11, a little bit different feelings as far as patriotism is concerned there. But you get my point. So there's so many emotional issues that go in when again, missiles begin to fly. Got so many more things I'm going to share with you. So excited to be with you today. Come back. We'll continue our discussion. The Iraq war, what it means for your money. Let's turn it over to Kristen Snow. She's in the right now traffic center. Hello, Kristen. Come back to the John Sanchez show on News Talk 780K, which appreciate you joining me on this wild ride day. Say the very least once again, our topic, Iran war, what it means for your money. All right. So many things I got to go over with you. Can't wait. Let's get started. All right. So how do we finish up? Like I said, we had a 687 point swing from the lows to the highs of the day. But it was all said and done closing bell at one o'clock. You think, yeah, just kind of an average day. Nothing going on. Nice and quiet. Finish down

12:36only 73 points on the Dow. How about that? 48,904 was our closing level. Is that she went positive a long time before the Dow did today rebounded nicely? Finished actually with a solid gain of 81 points, 0.36%, closing at 22,748, S&P 500 higher by 3 points, closed at 681, Russell 2000, almost a 1 point gain, a 0.90%, up 24 points to 2655. Wow. Talk about the little engine that could, like I said, before we went to the break. Let's go to the commodity site. As I said, oil prices, $4.17 rise, 71, 23, a barrel, gold, just a 62 dollar and 80 cent gain. I mean, we've seen a lot bigger gains on that than, you know, on one day when there's nothing going on. So no major again, panics moved to the safe haven of gold. 5,311 was our closing level per ounce. And as I indicated, nine basis point increase on the 10 year at the yield of a 4.05%. Like I said, I gave you the explanation behind that. That one was a head

13:41scratcher. That one, I think that one caught a lot of people flat footed today. I really do. It's always, it's always, it's a textbook case when there's global tensions like this, people flock into the bond market drives the yields down. Today was just the opposite. They dumped the bonds fearful of inflation because of oil prices rising. So I'll tell you what, I'll be honest with you. This one's going to go in the John Sanchez stock market playbook because I've never experienced this before. Never seen this happen before where bonds went down in the day of global tensions like this. So it was a good learning lesson like I said for everybody, no matter how many years of experience you have, you always learn something in this business. That's why I love it so much. You know, I was going to start to show in the first segment by telling you something really blunt and I got sidetrack. It's got so excited to start talking to you. But I'm going to do it right now. So listen closely. I don't want you to listen to me or my advice today or over the next few days, if this thing continues. I also don't want you to listen to anyone. And I'll tell you why,

14:47because we all think we're smart. We all have our opinions. We all can talk about our years of experience. And I remember when this and when that, but I would be lying to you and I will never, ever, ever do that to you. You will always get the straight facts for me. If I sat here behind this microphone and behind this camera, and I said, I know exactly what's going to happen. If this happens, this is going to happen and this is going to be the result and you need to go here and you need to do that. Can't do it. All I can give you is my best guesstimate. My first institutional level webinar was at five o'clock this morning with BlackRock. I had another institutional level webinar at eight o'clock with JP Morgan, pretty smart people, hell, a lot smarter than me. And they all said the exact same thing. This is our best guesst. These are our probabilities, but the bottom line is we don't know. And so like I said, they're a lot smarter than this guy. And I'm not going to sit here and say, this is exactly what's going to happen. All I can give you is what I've seen, what I've had happen in my career under

15:51similar circumstances. But every one of these conflicts is different. That's the other thing is there's always different scenarios that go on, right? We've never toppled a regime like happen with a killing of the Itolla. Obviously, we go back to that. You said June 12th when we dropped a whole bunch of bombs, America looked like a hero. No injuries. Well, we've already had what nine unfortunate U.S. servicemen deaths. And we want an entire country to adapt a new regime. That's the unknown in this situation. No one knows what's going to happen. Is it going to be what is it? The Itolla's, it can't keep track of it. I don't think it's his son. Maybe it is his son. I don't know. There's some relative of his. They're saying he may step up. Well, do you think he's going to be any different if he and his group get to take over? Probably not. I am certain on this fact, I can promise you, in my opinion, that you are seeing the CIA and every covert operation that the United States has, and along with other countries

16:54around the world, probably doing anything and everything they can behind the scenes, monetarily, promises, et cetera, for them to get in some new regime that they want to get in. Not what the Iranian people want, but that the rest of the world wants to get some calm in that place. I promise you, there's some serious money probably being touted. And like I said, promises and you name it. So listen to what I say, but just know, I don't know much more than you do. All you can tell you is again, my experience in the market, but every one of these are different. No one knows. Even the president said this thing could last where he said today in a press conference where ahead of schedule, this thing could last three weeks, four weeks, five weeks, we don't know. One part that's scary that we've heard over the weekend and we heard it a lot today and again, the different press conferences. US is running a little bit low on milk ammo, meaning the rockets. We gave a lot of rockets, sold a lot of rockets and various types of munitions, bombs, et cetera, to Ukraine and other conflicts that we've been involved in over the last few years.

17:58These missiles, these bombs are not cheap. We have two to three million dollar missiles being taken out by $500 homemade drones. And so you all heard that I'm sure over the weekend also. That's one concern. When I've never, I've never, in my experience, ever heard the US government say, basically, we got to watch what we're dropping and what we're firing because we don't have a lot of them. They already said they're bringing in stockpiles from other parts of the world because stockpile there in the Middle East is starting to run low. I've never heard that before. So the reason I'm bringing that up is could that mean that they will try to get this done sooner rather than later? I think so. I mean, think about it. If you were in the president and in a general's position, and you're like, okay, I've got, and I'll pick a hypothetical number. I've got a hundred missiles left. I'm going to do one of two a couple things. Number one, I'm going to make sure I'm going to use them in the most effective place. Number two, I'm going to be using them sparingly. And number three, I got to leave a few more because Lord knows there's something else could break out around the world.

18:59I know I'm going to extreme. We don't know what our stockpiles are. I'm sure we're fine, but I'm just going off of what they're saying. That started over the weekend. We're running low. So once again, that tells me I think the president probably wants to get this war over with sooner rather than later. Now, things were relatively calm today. One other big event that I want to just briefly mention to keep an eye on. And it caught a little bit of attention in the markets and things, but I wanted to throw this out there. And that is evidently in Qatar, which if you remember, my brother and my family, my nephew is a professional soccer player. A bunch of my brother, Dr. Dennis Sanchez, his side there, they were there. This, what was that? Sometimes this summer July or something like that. One of their massive LNG refineries got hit. And evidently, there is zero, zero natural gas flowing out of that area. So the reason I'm bringing that up, I'm trying to find our price of that. But it was soaring early to Dave's again, again,

19:59a drone hit that facility in Qatar. Those are, you know, reason I'm bringing that up also is that's what I'm talking about. Those are the kind of things that we have to be careful about. You just never know what can get hit. I mean, obviously, they'll all these countries have targets that they've laid out that they want to hit. Can they be successful and do it? You know, that's anybody's guess. Yeah, natural gas. Well, this is second day. This is trading really Tuesday's value just up fractionally. But yeah, it was up like four to five percent earlier. So we got to watch that side of it also. All right. Now, when we come back, let's turn it over to you. You got the details. You know what's going on? I brought you up to date. You've been hard at work today. You're now up to date. Let's lay out a game plan for you when we come back. Let's turn it over to Jack Sabin. He's got news traffic and weather. He'll check back to the John Sanchez show on his talk 780K, which thanks so much for joining me today. I do appreciate it. Lots of things to talk about. Let's get right back to it. Our topic, the Iraq war. What does this mean for your money? So the first half of the show, I laid out again, the market reaction today, bottom line, cool, calm and collective, the little engine that could, I gave you all kinds of analogies. And once again, we finished down just 73 on the Dow after being down almost 700 for the lows to

21:00the highs today. Nasdaq, nice gain of 81 points, 0.36 percent, S&P higher by three, Russell 2000, the little guys, you know, they were the best 0.90 percent gain up 24 points. Now, I do want to bring you up to date. Obviously, watching the the futures very closely, nothing major going on right now. Dow futures down about 69. Nasdaq's down 59. S&P's lower by 13. I've been watching them kind of hover between here and down 100. So nothing too significant by any stretch in the imagination. All right. So before I get to you, I want to, I want to throw a couple of things out. I want to give you a great quote that I heard today that I think will resonate with all of you. And then the second thing I want to do is I want to break a big, big lie that you are hearing in the news. Okay. So let's do the fun stuff. Let's do the quote. So I told you I was on a institutional level webinar this morning, did, again, two oven one at five o'clock this morning with our friends over at Black Rock and then another one at eight o'clock this morning with our friends over at JP Morgan to highly respected firms. We do a lot of business with both of them.

22:04But I want to go to the JP Morgan one. Again, both of them were excellent. They essentially all have the same thing, which is what I said a minute ago. No one knows. Don't listen to anybody. We just got to let this thing play out and just take it day by day, hour by hour. But I want to go to this quote. You know that I'm very jaded in my opinion of which Wall Street strategist and analysts and things that I listen to because I've seen them come and go and very few of them are worth the paper they write their opinions on in my opinion. But there's one that I have followed for a million years. I know he's been doing this a long time and I I've had the pleasure to meet him many times at different conferences and things. His name is Dr. David Kelly and he is JP Morgan's chief market strategist and just a very humble man, very no BS. He's got a great, you know, English accent. So he sounds smart already before any words even come out of his mouth basically. But he and another fellow from JP Morgan were leading this webinar that I was watching this morning. And Dr. Kelly said something that I've never heard before. But I'm going to again put it back in

23:07another thing I'm going to add to my John Sanchez trading rulebook today. And I want to share this with you. He said, you can hedge a risk or you can diversify a risk. You can hedge a risk or you can diversify a risk. Now why is this sitting with me? Because this is back to the point that I'm going to get to now, which is I cautioned everybody on my first update in the morning, this morning at 523. And I said, please do not make the mistake that we have seen investors do over and over again. When these conflicts erupt, our phone goes off the hook where people are going, I want you to put me into, you know, Raytheon and Lockheed Martin and Boeing, all the defense oriented stocks, 99% of the time we go, unless, I mean, it's their money. They can do what they want. But unless they really push us, we say, no, don't do it. Because as fast as those go up, they come down. Because again, anything can happen. I mean, we could probably time the show's over. You know, this Iran thing could be done. I mean, you just don't know. You just don't know. So what Dr. Kelly said, you can hedge a risk, right? So you can hedge. So what is our risk

24:12in this Iran conflict? What is our risk? Our risk is some crazy new regime takes over. And they hate us as much as the previous regime oil prices going through the roof stock market plummeting our inflation skyrocketing. I mean, it goes on and on. But can you notice just off the top of my head, I just said those. I'm not looking at any notes. You can see me on YouTube. I'm not listening and watching any notes. I could make a list, probably 20 different items, right? There's always risks in investing, always risk. World can feel perfect. Things can be great in the US. There's always a risk. So once again, you can hedge a specific risk. So I don't have the time to get into it, but pick a pick a risk. And I promise you, there is a hedge that you can do. A hedge again is defined as something that will limit your downside, right? If that asset that you are trying to hedge is going down, your hedge should go up and value, right? That's that's the theoretical fundamentals of a hedge fund, right? They're designed where their investments go up when other

25:16investments go down kind of back to the teeter totter scenario. So back to Dr. Kelly, you can hedge a risk. So any of these little things I said, oil, risk of inflation, et cetera, or you can diversify a risk. And that's my primary advice to you this evening. If you're not a client of ours, we're already doing this. Thank God. But if your advisor is not doing it, please give us a call, 775-800-1801. Or if you're managing money yourself or if you're looking at your port, your K or something like that, this is when you do need to take a look. And we have pounded the table on the importance of diversification. Diversification hasn't worked in the last few years. They worked last year, last few years. Boy, unless you were in the Mag 7, you really lagged the market. That's okay. But boy, if you've got a diversified portfolio right now, you are thankful you're sleeping well. And you probably are withholding this volatility very nicely. Hedge a risk or diversify a risk. Most people do not have the expertise or the capital because hedging costs a lot of money requires a tremendous amount of expertise. Because in most cases,

26:20just deteriorate, right? They expire. So if I wanted to, if I had a $100 million stock portfolio, an institutional trader, what's my hedge? I buy puts on that portfolio, right? Derivatives. But those cost me money. If I'm right, the market goes down. My puts go up. My equity market goes down. They somewhat neutralize or maybe I make a little bit of money on the puts. But if I'm wrong and the market goes up, guess what? My puts, they go down to value. So there's really no hedge that you can do for free theoretically. So just remember that. That is one of the best ways to survive this market right now. So let's start off with what not to do. I mentioned it just a moment ago. Now we had some, we had some big moves today in the defense names. I mean, it started right in the pre-market session. And again, this is like clockwork. It happens every single time there's any type of overseas conflict. So I'll give you just some examples. You got Aeron Defense company Axon, up $29.62, 5.46% gain to 572. Northrop Grumman rose $43.64, 6.02% finished at

27:3076802. RTX, so formally, Raytheon, up a $4.71% $9.54% gain to 212.16%. Those were some of the top performers. I share DJ, I share Aerospace ETF up 2.8% for the day. If you're going to play, I'll give you another little tidbit of advice here. If you're going to play the defense area, like you think in your heart that this thing's going to last, can you understand the risk? Do it via an ETF. I don't care which one you do. There's a lot of them out there that follow the Aerospace and Defense area. Do it via an ETF. That way, at least you're diversifying your risk across there. A weakness. Airlines, right? Troubles came to a halt over there. So you had United Air down three bucks and Delta down a buck 45. Palantir was a start today up almost 6% $7.94 gain to 145.13. Again, remember, Palantir got chewed out by the president and their contract cancelals. I've mentioned on the show on Friday. So go figure out how that one works. I wanted to be still real happy with that one. Other side today, that was good. Some of the big tech names. She had Microsoft at $5.81. She had NVIDIA at $5.29. The bag 7 really stood out. Wall Street Journal said the

28:35GIA NVIDIA plans to unveil a new chip designed to speed up the AI processing. My goodness. That really helped things out a lot. Cruise lines that Ross asked me about this one this morning. I thought it was interesting and looked it up and I was weak and continued that way. No surprise there. Anything travel related. He had some of the gaming stocks this morning. I didn't see where they finished, but they were down that you had Norwegian cruise line down $2.60 about a 10.49% loss to 2219. So what do we not do? Then when we come back, I'll tell you what you should be doing. What we should not be doing, loading up in defense stocks. Again, if you're going to do it, it's a trade. It is not an investment. It is a trade. Don't load up in safe haven place. Right? Again, if you have a diversified portfolio, they should already be in there. If you don't have them, add a little bit, but don't get crazy. Don't load up. Don't think the world's coming doing in. The other thing not to do at this point, don't panic. Right? These things, even the goal for is extreme as that was. We haven't had anything near that example where we had boots on

29:36the ground, obviously. These things don't tend to last a long period of time. They really don't. It's just the way it is anymore. Take a deep breath. If the volatility is getting you, that says you've got too much risk. Pick up some more names, diversify things out a little bit. There's some phenomenal buying opportunities out there after some of the names that got beat up again today. Phenomenal time to start looking at dollar cost average into there. But I've got a few other things I want you to do. I'll tell you about that as I wrap things up. But first, Ms. Kristen's known the right now traffic center. She's going to wrap us up there. Mike, the John Sanchez Show on News Talk 780K, which pleasure to be with you. Thank you so much. I hope you feel a little bit better than you did when the show started. I know there's a lot of confusion out there. You're hard at work. My job is to sit here and make sense of it for you and let's tell you what we're seeing, but what really is going on. Just kind of leave you with the features right now down about 82 on the downside. Nasdaqs are down 75. It can pays lower by 15. So once again, nothing too major by any means. Okay, before I get to what I think you need to

30:38be doing right now, I need to break a major, major myth that you are going to probably read about, hear about, et cetera. We were recovering really nice today and then all of a sudden the market taint. And I'm searching all my new sources. I'm like, what just happened? I'm seeing no headline. Well, it was about five minutes later that finally it appeared on the headline, caused the market sell off five minutes before. And what it was was one of the generals in Iran said, the straight of Hormuz is closed. Now, I'm going to set the facts straight, folks. The straight of Hormuz does not close. It cannot close. It will not close. Can it be dangerous? Absolutely. But this is my point about algorithms. They listened to that. Algorithms didn't know that that's not true. Human beans, if you're an oil trader, you know that's not true. They don't close the straight of Hormuz. It's people always think it's like a,

31:44like right, where you've got locks and gates and things. It's not. It's a natural waterway. It's not like the Suez come out, either. Natural waterway. And it's widest point. It's about 21 miles long. I'm sorry, it is narrowest point. It's about 21 miles wide, pardon me, about 21 miles wide. It's it's like a like a sharp turn that you get to do. So it's about 21 miles wide at a narrowest point. Shipping lanes, which is traditional and international shipping at two miles wide each direction. It's like a highway, right? Right side to starboard side. You know, it's going one direction, port side, left side, it's going the other direction. No gate, no lock, no structure. Nothing can physically be shut. International maritime law governs the straight of Hormuz. Not Iran, not anybody else, United Nations Convention on the law of the sea guarantees transit passage through the international choke points is what I dug up. Iran cannot legally close it. Now, what can I ran do? And the reason this is so important, of course, we're talking oil, oil, inflation, stock market, all that. So even though, of course, Iran cannot close the

32:47straight of Hormuz, like this general said they can, they can disrupt it, right? We saw that months ago. They can mind the ship lanes. They've got missiles and drones. But here's the situation. Hopefully they learned from last year when they decided to harass all the vessels going through the, the, the straight of Hormuz and our naval studs were there. And what do they do? The minute they, the satellites and radar pick up where some of these attacks come from, they just destroy them. And that's why eventually things calmed down and the shipping began once again last year. You know the same thing's going to happen. So can they seize vessels, harass them? Yeah, but there's, like I said, I, even those people as crazy as they are, I don't think they're going to be that stupid to do it at this point. Maybe fire a few drones or something, but my lure. Now, why is this place so important to keep in mind? 20% of the world's oil passes through the straight of Hormuz. Pretty significant, pretty significant. Your major exporters are Saudi Arabia, United Emirates, Arab Emirates, got Kuwait, Iraq, Qatar, so on and so forth. If the traffic slows even a little,

33:51which as of this morning, I didn't see before the show, I didn't get a chance to look at the, the, there's a, there's some great naval websites that we use that you can actually see through GPS, what type of ship it is and if it's moving or not. And this morning when I looked, this was like, you know, 5530, about 70% of the oil tinkers in the straight of Hormuz were anchored. They, they weren't going anywhere. So we will keep a close eye on that. All right. So now to wrap up, what do you need to be doing right now? Most important thing, you stay calm, you diversify, as I said, you'll look for buying opportunities. I mean, come on, Home Depot today down almost 10 bucks just because you had one day with all interest rates going up, you look at things like that, things that have this, this situation where they moved abnormally just because what's happening in the, in the Iran situation. Look for opportunities. That's one thing I can tell you. Look for opportunities. You'll be fine. We'll get through this. God bless. We'll see you tomorrow on the John Sanchez Show. Take care. John Sanchez is a registered investment advisor and the

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