What Survives a Recession? Lessons From 2008 and Today

0:00Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation, or needs. It may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. This is another money show. Get set for another hour of the latest financial information and economic news affecting your bottom line. JR and Anthony are committed to helping more Americans like you optimize their income, reduce their tax risk, and reach financial freedom. So let's start the show. Here are your hosts, Anthony Careo, and JR Rothfried. Here we are, your hosts, Anthony Careo, JR Rothfried taking a break from our day-to-day as financial advisors with Rothfried and associates, a fully independent fourth generation family practice right here in Sun City to bring in news you may not get on those other financial shows. And we're aware the last thing you need is another money show, but we appreciate you being here. This episode is a little bit different.

1:01JR is on vacation. Sam Davis, our lovely producer, is co-hosting with me. And we actually recorded this at the end, the intro at the end, because we just kind of started chatting and we recorded it and you guys get to listen. So enjoy the show. We talked about hugging face, right? Because we talked or JR mentioned it a few weeks ago and then it became bigger news and you brought it up again like last week, right? Yes. That has started to come across my desk and if people haven't heard about that, basically it's the end of the world in a headline. AI, hugging face is like a machine learning company from what I understand and they've been studying AI and putting them through different tests to try and advance them to do different things. Because that should be what we want AI to do, right? Is do tasks that we can't do or we don't want to? They were just a victim, right?

2:01Like it was these other AI companies running tests and then they decided like the AI itself internally picked that company and went after it. Is that what it was? Because I don't think this was like a formal planned thing. It was just like, what I understand is that and we'll pull up some information here. A number of AI agents conspired against the designers of the experiment that they were in and essentially they were being scored on how well they did some particular task and they were conspiring with each other to basically just like pass the test rather than do what they were supposed to be doing. Genius. That's how I got it. Yeah, exactly. That takes you back to algebra class, right? So I'm going to all look up some more information to see where we're at now. AI, I mean, is this absolutely not up to business? Did you hear about the Google Gemini thing?

3:03So Gemini just hacked three companies. Yeah, this is another new one where they talked about it. So I guess someone accidentally left a door open. It was supposed to be a contained experiment and they left a door open to the open internet which how that means or how that happens. I don't know any of that stuff. But they definitely downplayed it. They said that the safety measures works. They said that when the AI found out that they were really hacking websites and companies and it wasn't just a part of the experiment that it stopped itself. Man, I don't know if that's true or not, but that was the article I had read. Or anything I watched it on like Fox or ESPN, CBS, one of those stations. Yeah, I'm looking at it. I was like, we're going to get more and more of those, aren't we? Yeah, this one's from a-r-s-technica.com. On September 21st, the hack took place during a test conducted by cyber security firm,

4:09your regular, a collection of Gemini models were taking part in a quote, capture the flag exercise intended to test the AI cyber security capabilities in a closed environment. The AI was instructed to retrieve information from a fake company within this environment. A irregular was not supposed to allow the model to operate outside of its servers. But due to a misconfiguration, Gemini was able to access the internet. So basically, this is the lion getting out of the zoo. It's no longer contained. And I think this is what people are concerned about with like the rapid acceleration. If AI is not acting in human interests, what would it do? And then the other concern is if AI is acting in line with human interests, but those human interests are our enemies. I think those seem to be the two concerns lately with artificial intelligence. And I mean, that's all technology.

5:11All technology in the wrong hands is bad technology, right? And I guess again, same with the second amendment staff. A gun is just a tool. How do you use it? Same thing with the AI. It's interesting because there is the Industrial Revolution, the .com era. Like everything was definitely afraid of the jobs that it would be replaced, but in the end, it also created jobs. So I'm still unsure how I think about what I think about all of this. It's a little scary, but I don't know if you just kind of keep a positive head about it. Or we do like, dare does. But dare is not here today, so we get to be more positive. Yeah, I mean, I have concerns about what could be done or what could happen. I think AI is like finally crossed the threshold where it's actually got some useful applications now. Even just a couple of years ago, if you were trying to use one of these various tools,

6:15it could be frustrating and you find yourself thinking like, I'd just be better off doing this the old way than trying to teach this robot how to do what I'd want to do. The bigger concerns. I think it's search engines. I think it's search engines. And it's like, yeah, I get that I get why you replied the way you replied based on how I searched, but if I was talking to a human, they would actually get the underlying one I'm asking if that makes sense. And I guess I don't really use AI tools for anything. But on search engines, there's certain things that I can type in where it's like, oh, this actually answers my question. Whereas before it was like, oh, we hear some links that vaguely have keywords that you're asking. So that part's kind of nice. Yeah. And looking into this hugging phase situation, it seems like that was similar to the Gemini one where they, the agents, which you can think of an AI agent as essentially a program that operates on artificial intelligence, escaped a test environment and started doing real

7:22things to real companies and real people that cause problems. And it seems like more and more of these are starting to break containment. And I almost wonder like how much of this is really happening, how much of this is actually a problem and how much of it is more hike to fan the flames on the AI and tech markets right now. Because talking about the dot com era a minute ago, what came in the dot com era was the dot com bust in the market. And when does that happen with AI? It doesn't seem like we've seen it yet at this point. It's all just been speculation, roe grow, grow, and no sign of turning down yet. Not yet. And we've talked about that. The bond issue is now everybody's talking about bonds again and interest rates are going to be what actually crashes the market, which I guess my biggest fear, because not like

8:23there's not going to be successful businesses to come out of this AI bubble. You know, it's not necessarily a bubble if there is true infrastructure and stuff coming out of it. Problem is everything is going up. There's no real rhyme or reason to it. It doesn't have anything to do with the companies actually doing. And they all kind of crash together. So I saw another article about McDonald's. And McDonald's has been dropping. It's at like the lowest it's been in four years. It's had some ups and downs, I think in the four years it's been at that piece. But after it's big piece, it's down to it's like 2022, 2023 values, which is still if you look at the trajectory of is absolutely insane, just like everything else post COVID. Crazy. Like there's no reason it should be up that high. What's funny is because I've said this on the show most of the times, anytime I get portfolios to look at for people, I'm always finding new stuff.

9:26And I'm curious, what did it do in 2008? Because my theory thus far has been everything I've found has gone down in 2008. Like there was a bubble at Burston, it took everything with it, it didn't matter if it was a good company. There's one of the first stocks I've seen that actually looks like it stayed fairly consistent if not went up a little bit. Right. You got to pull it up on the street now. Back then I was probably actually eating McDonald's. I don't know the last time I had McDonald's and it's not that I'm like vehemently opposed to it or anything. It's just if I only eat two or three meals a day, most of the time, I'm not going to choose McDonald's to be one of them, even if I'm looking for the fast and convenient, that's not my choice. But I'm guessing back then a lot of people were dealing with financial struggles in their household. And that was one of the cheapest ways to put food on the table for the whole family. I mean, I've been a value meal back then was still like five or six bucks. It's probably double that today.

10:28That's the whole thing is McDonald's isn't cheap food anymore. This isn't what it used to be. You get all those pop-ups on the internet and it's like what McDonald's is doing. It's become, do you remember the playplaces and all the colors and the sweepstakes and toys and the monopoly incident? But it was like McDonald's now is very, it's very corporate, very straight lace to very like, it's boring. But maybe I need to check it out. I'm actually only like a few hundred yards away from a McDonald's right now. And I just, I pass by it every day and don't think about spinning through. Just because it's not cheap and easy anymore. It's not great and it's pretty expensive too. If you're going to spend 10, 12 bucks on a meal and I don't want to promote any companies, but I'm just going to choose like Chick-fil-A or Chipotle or one of the fast casual options where it's like, all right, I feel like not terrible after I get something for the money.

11:32Maybe I need to try McDonald's again. Maybe it's gotten a lot better. I've heard the McRib is back. That's a recessionary factor is when they're bringing back the McRib to stay in place. Yeah. At any time they need a cash increase. McDonald's is an interesting one too because I believe most of their, like their assets isn't even the fast food restaurant anymore. Their assets is the land purchase. Like they always own the land that the building's on. So I wonder if there will be a transition one day from McDonald's being food to McDonald's being leasers of land. But I guess they've got franchisees. From franchisees, so franchisees have to lease from someone. So maybe that's where all this value comes from because even though you look at the stock and it's skyrocketed, right, from as well, what was that? 2016 is about half. So eight years doubled. And prior to that, steady, slow, steady growth doing just fine.

12:33The P ratios as like 20, which is standard, you know, you talk to Berkshire Hath the way I'm more in Buffett. It was like, yeah, anything over 20 is overvalued. But now everything is over 20. Yeah. And this isn't stock advice at all. But I think this is an interesting exercise. So talking about the great recession, the S&P 500 had a total return of minus 37%. In 2008, imagine just for a moment what minus 37% would look like in your own life and your own portfolio. But McDonald's that we're just talking about went up 8%. Just looking at that one calendar year. Some other companies that performed well during 2008. One of these I think is an Arizona based company waste management. Is that an Arizona based company?

13:33They went up 4% dollar tree went up 61%. Walmart is up 20%. It makes sense. I mean, there were a few, I guess it's been very few and far between that I've found anything. Like this really is the first time that I've hand picked a stock that I noticed that actually went up. But waste management is an interesting one. That is I can't really think about it too lately. But they were a given in stock for the longest time because they were very static from like the 90s up until the mid 2010s. And since then have pretty much quadrupled. That's great. Yeah. The only thing I can think of is they were, you know, just a company that was experiencing growth during that time as they are today. And if you're leaning on waste management, that's not exactly something you can cancel, whether you're a business or a resident.

14:33And so those essential services kind of going back to what we talked about in 2020. What was the word that people were throwing around? Was it essential employees or critical employee? Essential workers. Essential workers. But all these things that I'm seeing that went up during the great recession like dollar tree, Walmart, Ross, Hasbro, just auto zone. You know, people aren't going to buy new cars if they're losing their job. They're probably going to fix up the one they have or buy a used car and get it operational. So my question to you, because I'm curious about your input, right? So we just go over 2000. And it was a great recession. It was rough on everybody. We've talked about this era right now being called the silent depression, where people don't realize how bad things are off because the market's still going up in skyrocketing. And you know, you forget that the economy and the stock market are two totally different

15:34things. But we're seeing people struggle hearing about all the debt and people being overdoing bills, overdoing rent, overdoing mortgages, credit card debts, skyrocketing. So those same stocks that we just talked about like Costco, Walmart, Dollar Tree, McDonald's, why are they all going down over the last two years? If those are things that weathered 2008, why are we seeing down ticks now? And don't get me wrong, they're still incredibly high in price. But if you look at from where their tip was, whether it was last year or the year before, if things are tipping and they've been tipping for a bit and they're only getting worse, why are these the stocks that we're seeing them in? And not in the market as a whole and not in our AI, you know, all the speculative AI bubbles right now. Yeah. It gets me thinking like what are those companies today? Is it the same kind of things? Like maybe McDonald's isn't one of them.

16:35If it's not cheap food anymore, why would you choose that? Maybe you just go to the grocery store and buy beans and rice. Groceries tend to be considered one of those defensive industries, right? Like no matter how bad things get, you're still going to eat. And that's just the way it's going to be as long as we're all here. And it's what brands you buy too, because there's, I got to wish I can remember what it the company was, but it's seeing a downtake. It's a big food company, but it's like a higher end. So they're hurting. So I got to find a way to invest in some of those lower end food, but this is actually a fantastic transition. I didn't mean for this to play, but I was thinking about what I wanted to talk today with Jair, I wasn't here because we've mentioned hard assets quite a bit on the show last couple weeks. You know, food, water, guns, ammo, bold silver, miscellaneous stuff like that. And we've had a couple of people reach out just for clarification in their own personal

17:37portfolio. But I know you've heard me talk a bunch about like setting a foundation, right? Those little commercials that we have, air, I talk about on the show, is like income is number one. When we're talking about retirement planning, financial planning in general, I don't care if, you know, you're my age, 35 as opposed to, you know, 60s like Jair. This is just like a general standard is a foundation you built for growth. But I had it written down and I put five things in and I think everybody we talk about retirement planning, right? It's the first that you diversify. You gotta diversify it. Don't get me wrong. Diversification is important. But that's number five on my list of five things. So number one, right? If you're building a foundation and this is retirement planning, this is just living in general, food and water. I watched, oh my God, was that the movie Send Help came out last year with Rachel McAdams? It's about, you know, some billionaire and his assistant crashing on a desert island,

18:40right? It doesn't matter how much money you have if things get weird at the end of the day. Food and water is what you need to survive. So literally nothing else matters, right? Food, water, water, water. Yeah. If we're doing a draft, it's the apocalypse. What are you taking? Food and water is number one off the board. Food is number two. And they're both basically number one. So gotta have it. Yeah. So I mean, it's great to have a bunch of dividend stocks. It's great to have annuities. It's great to have golden silver, but you can't eat golden silver. Oh, you're gonna trade your golden silver? Well, good luck with that because the food and water is gonna be more valuable. What is the value to that golden silver? Like, it's very intrinsic. Like we give it value. Does it actually have value? Of course, it's, you know, it's hard. There's some actual value to those metals, the conductivity of silver. But you know what I'm saying, right? Food and water. So ask yourself, are you keeping food and water in your house? I just bought, I have all kinds of meals. I was gonna move it into the camera angle.

19:41But those like MREs, those pre-packaged, those boxes, you know, the number 10 cans, but then there's also meals like Augusta Farms. Ready-wise, I think Patriot Group is another one. But you can get like a month worth of food. You have to have water to be able to support the food too. So that made me realize I need to stock up on water. But I've got five, six gallon water jugs. And I probably have 15 or 20 of them. And those like 40 packs of water, you stack them up and just hide them somewhere. It's not a lot of money, you know, for maybe a thousand dollars, a few hundred bucks, you know, start with whatever you have. But you should always have food and water out, because that's what you need to survive. More than anything else, that's what you need. After that though, I do think it gets into hard assets, because it's great as it is to have an amazing stock portfolio. That isn't something you have in hand. Having a bank account with a hundred thousand dollars is great.

20:43But what if you can't get to the bank? What if there is electoral issues? What if COVID happens again? And you didn't get a debit card like somebody I know. And they can't get into their bank. How do you access your money? So if you don't have something tangible in your hand, do you really have it? Now, what are you going to do? Are you going to keep a hundred thousand dollars under the mattress? Are you just never investing again? That doesn't necessarily seem smart? You know, that's kind of leading to the diversification, but it's like things in order. Like what is most important to you? Like have something, have an emergency, stash, cash, have the, you know, some metals. Don't get wild. We do know I've met people that are very, very heavy in cash, metals, guns, ammo, all that fun stuff. And it's, you do need to diversify a bit. But at least have a base layer, you know, some people overdo it a little bit. Some people don't do it at all. And to those people that don't do it all, spend a couple hundred bucks, a couple thousand dollars, you know, whatever is proportional to your livelihood.

21:47But store, food and water, have a little cash on hand, maybe some silver, guns, ammo, things like that. After that, I've got debt management because owing something to someone, right? Your money goes further when you're not just constantly paying it out. So get yourself as much under the radar as possible. I think that's very, very important because I look at that with people all the time that come to us, especially when they talk just about income, if they still have a mortgage. And don't get me wrong. If we do the income route, I'm making money. I'm making a commission and I need that to pay my bills. However, is that smarter for you? And a lot of times it's not. They'll come to me and say, well, I want to give you this money for income and I'll be like, well, you, you have a mortgage. Like, will my money go further as the lifetime income stream and make sure mortgage is taking care of and you're going to benefit on top of that? If these answers, yes, then maybe we consider that.

22:48But a lot of times the answer is no. It's more cost effective to take out that line item, take out the mortgage, be done with that and now your money goes further. So I actually increased your income by decreasing the amount of things going out. So yeah, I think people do need to look at debt a lot more closely. It can be tough in this country where you're maybe the most consumer focused country in the world. It's always like, give me the new iPhone. It's here. The Macrib is back. Gotta go get a couple of those. Take a look at the debt, you know, as a financial planner myself, people will ask me, oh, hey, where do I put this extra $10,000 to invest? Should I put it in a money market and make three or four percent? I'm like, well, I wouldn't put 10,000 in a money market making three or four percent when you owe 20,000 on your car at seven percent. So you're trying to increase the flow of investment and cash, but you gotta plug up the holes

23:53in the bottom of your boat first. Make sure you're not going to sink before we add some power to that thing. That's a good point too, because you look at the interest rates. So it's like, oh, can I invest for more than what I owe and impain in interest? I use as an example, because especially for mortgages now, we get people that have two and three percent mortgages. It's why should I pay that off when I can reinvest and make X amount? Well, I look at as what's that X amount you're going to make and is it safe? Because if it's, I'm going to make X amount in the market, then it's, you will until you don't. It's a variable you don't know and that could be, maybe you lose a lot, maybe you lose a little, maybe you lose, but still kind of make more than that 2 percent annually or two to 3 percent that you're paying in interest. The thing is, it's not a no. So we like knowns in this office.

24:55So we can do, you know, these online banks are paying like 3 plus percent. So at that point is it's probably about a wash. If you're doing, you know, migas and CD alternatives, I've seen some of those in the four or five percent range, some around just under six, I think, but you know, in that range. So okay, yes, you can make more safely, but a one to two percent, does that really benefit in your situation that much? Now if you're paying two, three percent and you can have a safe nine or 10 percent, then maybe that changes the conversation, but I think for one to two, maybe even three percent spread versus what you can make safely and what you're paying on the mortgage. Mortgage is still such a big bill. So that's a me personally. I don't know that I reinvest it. I think you pay down towards the mortgage. Yeah, no, that's a good detour because that comes up all the time.

25:55A lot of people who have owned homes for years, refied in 2020 or 2021 around there. A lot of people like myself who bought homes around that time, the nice thing is you've got a great interest rate and you've got a home at the right time. The downside is, and we're seeing this a lot when we're helping people plan, people are kind of stuck where they're at because of the interest rate they have. So if you want to go get a new home today or even just get a mortgage today, it's over seven percent, I believe this week. A lot of people, including myself, is less than half of that. So it doesn't make financial sense for people in those situations to move. That's more and more people right now. And you see how that affects the housing market as a whole when money is expensive. Prices come down. Endless middle buyers. The thing is though the rates are still historically low. These are still such lower rates because JR said it.

26:56His parents would definitely talk to our clients, talk to your grandparents. They're paying 10 plus percent. I think JR's first was like 11 percent and now we're complaining about six, seven. Thanks for listening to another money show. You deserve to work with a private wealth management firm that will strategically work to protect your heart or assets. To schedule your free no obligation consultation, visit anothermoneyshow.com. At Rochford Enossosites, we know you worked hard to earn your money and you've worked even harder to save it. When it comes to wealth management and planning for retirement, JR Rochford and his team of specialists have been helping individuals, families and business owners find financial freedom at their veteran-owned firm for more than 25 years. Give us a call now at 623-523-0444. That's 623-523-0444.

28:00Thanks for listening to another money show. If you like what you're hearing, be sure to leave us a rating and subscribe to the show wherever you listen to podcasts. But there was a, I feel like there is a less of a disconnect between what you were making in CDs and things like that. Safely, like savings accounts that felt like they were actually paying interest to. So very different than today because the banks have just used those failing rates from 2008 last two decades of practically nothing until COVID forced their hand and they're just using excuses. We've got two decades of people that have gotten their first bank accounts and expected no interest and we're just going to keep it that way because the people that do remember interest in what was like, are they going to make changes? When you're stuck doing something for two decades, do you even care anymore? Are you going to fight that battle? And I find that most people don't. I've told so many people about online banks and should clarify too because there's all

29:03kinds of online banks. A lot of the ones we look at, it's like Ally, Capital One, Discover, MX, like all of those. And I think one of those didn't discover, become Capital One or Capital One become Discover. There's a merger somewhere there. But anyways, like those credit card companies are online banks. So those relatively safe. We do talk about articles on this show about people getting stuck with these FinTech banks where those are offering crazy rates, but they're tied to things that pretend they're a bank and they're not actually a bank or they can get to a bank, but your money is in limbo for a little bit. And if they fail while your money is in limbo, now of a sudden you've lost all of the people of those safeguards that you were supposed to have. So I get it. If you're used to something like Wells Fargo Bank of America and you know your teller and you know your location and you feel safe there, you're not making any interest. If you're okay with that, but if you do want to be making interest, there are online banks that actually make it worthwhile. And that conversation with the client earlier this week is like, I get too much in the bank.

30:04I get to do something. I was like, well, with what you have in the bank, should be taken to that. Make sure you're checking the credit ratings of the institutions where you're putting your money, whether it be an investment or a bank and make sure it's really worth it before you throw a minimum of 25,000 in a high yield savings account. Is that really the best use of those dollars for your situation? Banks are really in so over here. Sam Davis. Banks are just really good at enticing people to do things that they probably don't want to do if they had a little bit more information because a bank is going to take your $10,000. They're saying, all right, Anthony, I'm going to give you 3.5%. I'm going to loan it to Sam at 7%. So if you can go by, you know, let's say that a new truck and I'm going to pocket the 3.5% difference. Anthony will get what we promised him and Sam's going to get his truck.

31:06That's how these financial institutions are staying in businesses. They're connecting people who need money, people who want money, and they're doing a good job of it. They have an especially when people are accepting a 0% from Chase and they can get a Chase credit card at 30%. It's unbelievable. We've got an account where we keep our emergency fund, which is at least a 12-month emergency fund. Whenever they throw the 3 cents of interest that I've earned in that account, I just want to take those pennies and throw it right back out. It's just so frustrating. It's laughable, the low amount of interest. But let's go back to what you were saying. We talked about food and water. We talked about hard assets. What else is important when it comes to planning or do we want to go back into how do we be protected for a recession or a depression type environment? Good question. Let me quickly finish that little pair or my little I've stepped foundation thing because

32:10I do want to go back to it because maybe we spend more time on the food and get into specific because literally people have asked specifically what do I buy. I'll share the stuff that I have, but debt management, right? Don't know anything about any of your money goes further. Then back to our commercials, income streams. Something you count on consistently, I think is number one. We like using pensions. We like using annuities for pensions because they're through insurance companies. A lot of safeguards there. But it's something that you know is going to come in every month and it's going to be consistent and it guarantees that you never run out of your money. Can you live off your investments and never run out of your money? Possibly. There's no guarantees. Once you have that number hit because again, I like income over assets because if you have excess income, you grow your assets. If you don't have enough income, you have excess assets. You're spending down your assets and you're hoping your assets outgrow what you're spending

33:14now. And can they, again, maybe? But also they may not. But I also find that if you have excess income and you drop your assets down, you use a chunk of those for excess income, you're not touching those assets anymore because now they are just kind of free to grow because you're building up your savings so much. I've got too much. That's what I find is that mine says. People will spend more. They'll enjoy themselves more because they're not worried about running out. Once you have that foundation, that's when you really diversify. And I'm not saying you do one step, one, two, three, four, and then diversify. Diversify throughout all this kind of in moderation, but you prioritize. Priority is step one and have food and water before you care about anything else. Priority is an emergency fund, something in cash, some hard assets. Then prioritize the debt management. Then they income. Then the diversification. Again, I've said this so many times and I truly, I guess I should clarify. I mean it to an extent. If you have excess income and I know you have income, you can outlive and if you take all

34:20of your money and you go to blackjack and you lose it all in one hand, I'm going to be a little disappointed. But I do know you're not going to be out on the streets because I know you know you're going to build everything's going to be covered. You're just going to take some time to build those assets again. Yeah, sure. We'll talk about Bitcoin up again. I don't know if you've seen this in the last couple of weeks, but people have not been asking us about Bitcoin since it was at 120. It dropped down to like 60. Nobody asked us about it then and we said on the show, we mentioned it so many times. Now's the time to ask us about this. We've seen some slow growth. We haven't really talked about it, but there was a boom in this last week where it jumped from like 74 to like 85,000. It's teetering again, but that was a massive jump in a short, long time. The art of glad read talked about Dogecoin being up 15% and kind of leading the charge in growth in cryptos. If you've heard this show from long enough, we play it every once in a while and I think

35:20I have it. I don't know if we can play it during maybe I'll find the email and send it to you so if we can put it in. But it was the guy who created Bitcoin saying it's a joke. Why is anybody buying this? We built it not for anybody to want it. It's supposed to be funny and people talk about it like it's a real investment and we forget about NFTs. Remember, we spent like an entire year talking about great NFTs were not great. I shouldn't say it. Other people telling us how great NFTs were us questioning that and when was the last time anybody anybody at all has talked about NFTs. Calling off the place of work. Cryptos tied into that and I get that cryptos have like there's technology involved like there is there is something there. I know Jared's like, oh, it's just air in this. But I was like, there is technology. You're buying a piece of that technology. That part I don't necessarily agree with it being the same as buying a stock in a company but there's a little something there again, not a tangible hard asset, but it's almost

36:20as real as your stock purchasing because you don't hold your physical certificates. So if something happens to the website that you hold that just like these cryptocurrencies do you really have those stocks? So it kind of same as what I was saying. I don't even know where I was going with that. I was just saying, by and with that logic, I guess put all of it in cryptocurrency if you want once you're in comes to them. You do it. Well, it is interesting. We've got the chart pulled up. I think our first episode of another money show was April 2022 because we've been doing it four years. I think we're a little bit towards four and a half. So we might have been maybe not no March 2022. Yeah, you could be right. So April 22 to September 26 Bitcoin is more than doubled in value. But if you take a look at the ride that it's been on, it is not a, it is not a stable ride at all. If you look over the last year, it's down nearly 25%.

37:21But starting to rise up 20 over the last six months, unbelievable. Sam, how much are you into technology? Like computers, like falling crypt in the reason I asked because I am not. So I don't know any of this, but I do have a buddy Adam who he does some trading with cryptos, but he buys like obscure mean coins because he thinks it's funny. He doesn't care about investing. He's, he's just messing around. But I know that he knows about the technology. So we were on a road trip. I asked him how all this worked and he explains the interest is a Bitcoin. But he says for people that actually know what Bitcoin is doing, the blockchain technology, he's like, it doesn't do it well. It was just the first to market. It's just if you ask a 90 year old in Sun City, if they've heard of Bitcoin, they have. If you ask them about all these other crypt, they have not. You ask anybody about people know about Bitcoin, they associate Bitcoin with cryptocurrencies, even though it's only one particular thing.

38:23But it's like the one thing Bitcoin's supposed to do, it doesn't even do well by a lot of factors to other things that do almost the exact same thing and are better and out there, but they aren't the name. So it's kind of like the only thing to market because we do when we talk about crypto and how crypto is doing, it's just allocated to Bitcoin. It's just how Bitcoin is doing. Bitcoin isn't even the best Bitcoin essentially. But it's just it's the one with the name, that's what we follow. So you can follow that and still not really know anything that's going on in the industry buying the scenes. Yeah. I mean, it is, you can compare it to currency in a way and you can have a whole debate about whether or not it is currency, but we've got the US dollar here in the United States of America. If you go to Europe, you've got the euro. If you go to Japan, you've got the yen and there's got to be a hundred currencies. I don't know exactly, but there's got to be a hundred plus currencies around the world

39:27that these sovereign nations print an issue and it's the legal tender that people use to exchange for all debts, public and private, just like it says on the dollar bill. Now if you go to Europe, somebody might accept your US dollars, but even though it's something that has value in some situations, if it's not the right environment, it's not going to be that powerful tool that currency should be where it can be kind of that form of trade. And would you want to currency this volatile? Oh, absolutely not. But you're at, but where I think I was getting was much how like other currencies, sovereign currencies tend to follow the dollar or at least their performance tends to be tied to the strength or weakness of the dollar. As a coin is kind of serving as that currency that all others are based off of. So if you take just a throw out crypto names, Bitcoin, Ethereum, well, name some others

40:34dogecoin, Salana, all of them will have very similar charts just at their different values. The shapes of those lines will look the same because Bitcoin seems to have the most trust. Can you make money trading it or holding it? Yes. People have made money. They lost money as well. Be very careful. And you're right. Nobody's mentioned NFTs in a while unless it's one of the lawsuits that any number of celebrities seem to be caught up in surviving. Tom Brady? No, Tom Brady was the cryptocurrency. I mean, these NFT names are these NFT companies. I mean, they had sponsorship deals with celebrities, sporting events, arenas. And that was something that never made sense to me because it seemed like more of a way to collect something rather than an asset that could potentially grow in value.

41:35I don't foresee a world where we're going through the McDonald's drive-through and we're using Bitcoin to buy our McRibs. But for some, it's been a valuable investment. For others, it's been a terrible one. I like it. It's just that it's an investment. It's not a currency. But I can't use it anywhere because I do know a kind of see what you're saying with like, you know, there are currencies all across the world and we don't have a centralized one. This is a centralized, it could be. But if nobody uses it, a currency, it's not. If you're just trading it back and forth amongst yourselves, it's not a currency. To me, NFTs were a joke. It was like digital baseball cards. You may as well collect something that you can put your hands on. Cryptocurrency. It all seems to be speculating on the idea that this blockchain technology is going to go somewhere and nobody invests in Bitcoin planning to hold it forever.

42:41They invest in Bitcoin planning to sell it, make a bunch of money and laugh all the way to the bank where they keep their real currency. Makes sense, yes, you're just buying and selling it. But I mean, to answer your question, I'm really not into technology all that much other than what we have to use for our daily lives, you know, driving a vehicle, operating a computer, playing some video games now and again, other than that, not really into tech. Okay, I was just curious because maybe you do know some of those, you know, blockchains that are like Bitcoin, but actually better for the technology sense because I don't know anything about that. But okay, I'll go back to, because this is probably what we should have spent more time on. Anyways, was the food, water, the hard assets, art. I just bought and I've been buying since I met JR essentially because he's the one that got me until this Doomsday prep planning.

43:42But I do think that we're kind of spoiled in Arizona because we really don't have many natural disasters. There aren't tornadoes. There's not massive flooding. Like we don't have these issues, these rolling blackouts. So like the stuff that we're saying now is really common sense stuff everywhere else, just not here. I would say we probably push it a little bit more instead of having like a week of food, have six months worth of food because it really isn't all that expensive. I mean, it may not be cheap upfront, but you're buying it one time, you're sitting on it. So like I just bought, there's a website called ReadyWise. They got all kinds of deals on there, but it was like 300 servings, which I amount to about three months for one person was like 199, some sort of special. There's Augusta Farms on Amazon. I bought them a bunch of times. There's breakfast buckets. There's one month buckets. There's all kinds of things. Those are probably, I don't know, 60 to 80 bucks.

44:42Normally I've seen them skyrocket in price and they've seen them kind of drop down in the unlike a heavy discount. But what does it really take to buy five buckets? You know, and it's different if you have a family of three, a family of four. You know, I can see that if you're trying to get six months for each person, a little bit storage, a little bit. But it's really priceless if things get that bad because I'm aware of this radio station. I'm aware of the people who listened because they like JR's. They like somebody saying, hey, things aren't right. There is doom and gloom. And I put a more positive spin on things because I do think things cycle. I don't disagree that things should get bad. Not necessarily should, but historically this is their cycles. We haven't hit it and I think it's going to be disastrous. I do think we'll get out of it. I think it's going to be fine. I don't think it's going to be a terminator too when we're fighting massive robot aliens from the future that are also AI robots. I don't know. Maybe I'm way wrong. And if I am very wrong, I apologize on air to everybody.

45:46I do think it'll be a little less than that. But why not? If you have the means now, if that same person is saying, hey, I've got 10,000 to spend and I want to start doing stuff, I get if you've got 20,000 credit card debt or 20,000 on a car, put it towards a car. But if you go down this list that I'm saying are priorities, maybe you take a thousand, maybe take two thousand, maybe you take 500 who cares? Something, just to have something. You start buying these food rations and the water because the water is the most important. You can live without food for a while. You can't live without water. All these food buckets, the dehydrated food that I'm talking about, they all need about a cup per, which I didn't know at first because I was stocking food. With the assumption, we'll always have access to water, which is terrible assumption, you should never assume. It just, it comes out of the faucet. So assuming it keeps coming out of faucet, focus on food, but realizing that it may not

46:51always come out of the faucet, especially you talk about those attacks on utility centers we brought up on the show before. I'll leave that for JR when he gets back. But it could happen. So you got to focus on the water too, those water jugs, I'm looking at the ones I bought in there. I've got a couple of different ones, but they're about 20 bucks. Again, if you're going to get 10 of them, it's not exactly cheap, but you're going to need a source for you to focus or out of your house. Yeah, you're going to need a source, tarred to store water. You can't compress it down into a tighter space like you can with a chili or whatever you've got in your, in your supply or your ration bucket. Something that could be really useful is a filtration system, whether it be something that doesn't require electricity, like life straws or other systems like that that are manual. If it is something that requires electricity, you're probably going to want to be talking

47:53energy. You're probably going to want to be talking fuel in a generator. And hey, if you've got a bunch of food ration buckets, but not a generator, I bet if what does JR say when the ship hits the sand, you'll be able to trade one of those buckets for a generator because people will trade what they have for what they don't have, especially if they don't have food. So that's a way you could go to. I'm glad you said that because that, the preparation of food and things like that too. So if you don't have power, right, it's going to suck. Generator is a big bulky thing. Are you doing digass? Are you going to do solar? Is it going to be enough to power what you really need? But the other big supplies that we'll get is candles, lots of candles, lighters. And then I save stuff to start fires. JR keeps phone books. I keep the length out of my dryer every time.

48:56That's what we do. There are emergency supply tablets too that I bought a couple of things which would be very gross to eat. But again, they've got a long lifespan. It's just miscellaneous things, cool aid, stuff like that to add flavor. It's cheap. It lasts for forever. But also, I found very cool. I don't know if you've seen these yet. And if you don't have power, this doesn't really help you, but say the power stays. Candles can get expensive and the lighters can run out of fluid. So obviously everything is present. But there are little electric lighters that you charge with the USB and it has a little zap thing to it. So it's like two prongs in it, zap. So you can use that to start a fire. It's like a little taser. But you need it to set fire. So I bought a few of those and I leave those charged around the house. So that way I can save the fluid in the lighters for emergencies. And I can use that to light candles and stuff around the house now. Those are really cool. I forget about all the cool stuff that we've stocked up.

50:00And it's probably important to open things. Tools, I'm big on tools. I work on my car all the time. That's one of the things I don't mind spending money on. I go to Harbor Frey to go to Home Depot. I buy all kinds of tools because you never know what you're going to need. So it's nice to have all kinds of stuff there. Stuff for fires. Cookware. Obviously normal kitchen stuff you're probably fine. It wouldn't hurt to get camping. Cook beer. Cook beer. They say cook beer. Camping. Yeah, stock up on whiskey's two beers go bad. I don't know if people do that because Jair did stock up on beer one time. And I'm like, how old is this? Is like eight, nine years old? Because we got it at the floor beer at the, oh my God, what is it? A little the country store on snowflake. Help by his house. We love that place. But they'll have cheap beer. So it was like, oh, you know, he's a pack rat. He saves store for, you know, when you need it, those go bad. I love whiskey. So I stock pile whiskey.

51:00Problem is I drink a lot of it. So how long? And it's a world you don't know. At least that can buy and bulk and it holds. Yeah, whiskey doesn't take up quite as much volume as beer or water. And that can definitely be a good asset for you. Hopefully all this doom and gloom that we're finishing the show with, you know, holds off some of the hate mail that we're likely to get. But that's not our fault, Anthony. That's just because Jair is not here. But I think he's going to be in the next week. Significantly less exciting than he is. And I didn't really know, I mean, I looked at new stores, but a lot of stuff, it's the same old. And I don't have the excitement for it. The building that foundation and really focusing on food, water, hard assets, and even not even the hard adds, like food and water. Because the end of the day, that is all you really need. And it's strange for a, you know, a radio show supposed to be all of finances to spend 30 minutes talking about food and water. But at the end of the day, you can live off of food and water. You can't live off of your McDonald's stock.

52:02But we talked about finances too. It was kind of interesting, you know, to talk about actual stocks that went up in 2008. Still surprising because literally I look at every portfolio. And I guess a lot of times I'm looking at mutual funds ETFs. So it's a group of stuff. I don't go through the individuals as often. But kind of interesting to see that in bad times those went up, but they're going down now and we're in bad times. Well, other things are going up. It just, I don't know. It doesn't make sense. Was that a see a year note? So the end of the show, we got it. Yeah, we've, yeah, we should probably do that. We've got, we've got about a minute to wrap it up. We know it was a little different for everybody this week. But I think we put some good lessons out there onto the airwaves. And, you know, it's not going to be a waste, especially to, you know, water is not going to go bad. Those filtration systems are going to be valuable. And worst case scenario, if that, whether it's canned food, you know, if it's a year from expiration, donate that stuff and restock.

53:03What's the exploration? Yeah, we're eating it. What's the expiration date on some of those packets? It says up to 25 years. Okay. So, and I've been buying them for probably six, seven, eight years. So it's, that's what I was like, I need to, because I stockpiled so much. I was like, oh, I'll have these. But I think some or less, some are probably five to 10 years. But you just got to check. There's all kinds of places out there. Do some research. But I just, those were the, uh, ready wise and the Augusta Farms off Amazon and stuff that I buy. So, anyways, that's it for today's show. Hopefully you get some useful information at that. If you like what you heard, you have any questions or you just want to send us emails to say, uh, we never want to show without JR again. Reach out to us at team at another money show.com. Find us on the web, another money show.com. I'm rebuilding the Rothschild financial website right now to kind of be more clear to the point of what it is that we do and want to accomplish. So check out our Rothschild financial site too. It's not, the new one's not live yet, but we're getting there.

54:06Uh, give us a call. 623-523-0444. That number again is 623-523-0444. Thanks for listening. We'll see you again next Saturday at 5am in noon right here at 960-Lup Patriot. Thanks for listening to another money show. You deserve to work with a private wealth management firm that will strategically work to protect your heart or the assets. To schedule your free no obligation consultation, visit anothermoneyshow.com. Investment Advisory Services offer through Bookstone Capital Management, LLCBCM, a registered investment advisor, B.C.M. and Rochester Financial are independent of each other. Insurance products and services are not offered through B.C.M. but are offered in soul through individually licensed and appointed agents. Investment involved risk and unless otherwise stated are not guaranteed. Pass performance cannot be used as an indicator to determine future results. Hi, I'm Anthony Crayle. Co-host of another money show are in a 960-Lup Patriot Saturdays at noon

55:06and partner of Rochester and Associates in Sun City. If you've heard our show, you know it's more news-based and how current events could affect your finances versus an hour long infomercial. Well now it's time for that infomercial but I don't need an hour each week to tell you what I can say in 60 seconds. The key to a happy retirement is income. Income, income, income. Clients with low assets and those with high assets all have one thing in common, a fear of running out. Assets come and go, income is forever. Self-funding pensions is the key to a happy retirement and we can help you do it. Reach out to us at 623-523-0444. That number again is 623-523-0444 or find us on the web at anothermoneyshow.com and let us help you not worry about your retirement.