1 00:00:00,320 --> 00:00:02,360 Speaker 1: Alright, the time is nine minutes past the hour. It's 2 00:00:02,400 --> 00:00:05,240 Speaker 1: time to get to our guest, Loreeen, Gilbert, CEO at 3 00:00:05,320 --> 00:00:09,680 Speaker 1: Wealthwise Financial, on this historic day. Loreen, thanks very much 4 00:00:09,720 --> 00:00:13,040 Speaker 1: for joining us here. Kind of a quirky question for 5 00:00:13,200 --> 00:00:16,480 Speaker 1: you first here as we get started, is it time 6 00:00:16,520 --> 00:00:23,880 Speaker 1: to retire fomo from our essential lexicon in the markets? Well, yeah, 7 00:00:23,960 --> 00:00:27,400 Speaker 1: people have had a favorite missing out. But you know, 8 00:00:27,600 --> 00:00:30,200 Speaker 1: right now, it's just wrapping up the rest of this 9 00:00:30,280 --> 00:00:34,000 Speaker 1: year and understanding where we are and looking forward to 10 00:00:34,120 --> 00:00:36,600 Speaker 1: next year. As far as the markets are concerned, and 11 00:00:37,000 --> 00:00:40,000 Speaker 1: it's been a rough year for investors definitely, in both 12 00:00:40,040 --> 00:00:44,120 Speaker 1: fixed income and inequities, and many investors, you know, really 13 00:00:44,200 --> 00:00:47,080 Speaker 1: don't know what to do. But if we look forward 14 00:00:47,159 --> 00:00:50,280 Speaker 1: and we look ahead, we do see some opportunities in 15 00:00:50,280 --> 00:00:54,160 Speaker 1: the market. Specifically, we like a lot of things in 16 00:00:54,200 --> 00:00:58,120 Speaker 1: fixed income in the shorter term and in equities where 17 00:00:58,480 --> 00:01:01,360 Speaker 1: we like once again emerging markets as the dollar kind 18 00:01:01,360 --> 00:01:04,840 Speaker 1: of rolls over in weekends. Yes, I'm actually larn that, 19 00:01:05,080 --> 00:01:07,760 Speaker 1: you know, as your markets is a broad brush, but 20 00:01:07,800 --> 00:01:09,840 Speaker 1: you know where most specifically, I mean, would it be 21 00:01:09,880 --> 00:01:11,680 Speaker 1: the likes of China and the China's of this world, 22 00:01:12,040 --> 00:01:13,880 Speaker 1: perhaps there's a lot of people have been gaining more 23 00:01:13,880 --> 00:01:17,240 Speaker 1: faith in India. What's the deal with you? Yeah, no, 24 00:01:17,360 --> 00:01:20,679 Speaker 1: we're actually looking at Latin America is one area of 25 00:01:20,720 --> 00:01:23,960 Speaker 1: interest as well as as well as the Pacific rim 26 00:01:24,080 --> 00:01:27,280 Speaker 1: um for emerging markets. So, you know, it's been hit 27 00:01:27,440 --> 00:01:29,759 Speaker 1: hard this year with the dollar being as strong as 28 00:01:29,760 --> 00:01:33,480 Speaker 1: it has and and but now that we see that that, 29 00:01:33,600 --> 00:01:36,640 Speaker 1: we do think the dollar is going to weekend once again. 30 00:01:36,680 --> 00:01:38,560 Speaker 1: I think it's time to be looking at all of 31 00:01:38,600 --> 00:01:42,679 Speaker 1: an international again. And then in the developed areas, we 32 00:01:42,760 --> 00:01:46,920 Speaker 1: love Japan and the UK. You know, it's kind of 33 00:01:46,959 --> 00:01:49,920 Speaker 1: interesting when we watch the data in the US economy 34 00:01:50,000 --> 00:01:52,200 Speaker 1: and then what we can learn about the global economy 35 00:01:52,240 --> 00:01:54,680 Speaker 1: as a result. On the one hand, you had consumer 36 00:01:54,680 --> 00:01:58,240 Speaker 1: confidence today um jumping to a very high level, highest 37 00:01:58,240 --> 00:02:00,680 Speaker 1: we've seen in eight months. On the other hand, you 38 00:02:00,720 --> 00:02:04,640 Speaker 1: know home sales existing US home sales weekend for like 39 00:02:04,680 --> 00:02:09,600 Speaker 1: the tenth month, and it's a record retreat, right, so well, 40 00:02:09,720 --> 00:02:14,520 Speaker 1: the interesting part about the consumer numbers were the expectations 41 00:02:14,639 --> 00:02:18,239 Speaker 1: that were the first time above eighty this year. They 42 00:02:18,639 --> 00:02:22,919 Speaker 1: rose to eighty two point four, which was a remarkable improvement, 43 00:02:23,000 --> 00:02:26,680 Speaker 1: and that was directly a result of you know, gas 44 00:02:26,720 --> 00:02:31,160 Speaker 1: prices going down, uh, inflation starting to moderate, so that 45 00:02:31,440 --> 00:02:35,280 Speaker 1: the consumer is feeling a little bit better about things. 46 00:02:35,320 --> 00:02:38,120 Speaker 1: But just like you said, with rates as high as 47 00:02:38,200 --> 00:02:42,200 Speaker 1: they are interest rates with housing, we also saw a 48 00:02:42,360 --> 00:02:45,760 Speaker 1: number of thirty two percent of homes were being purchased 49 00:02:45,800 --> 00:02:48,919 Speaker 1: with all cash, So people who are mining homes are 50 00:02:49,000 --> 00:02:52,720 Speaker 1: looking at ways to avoid those high interest rates. But 51 00:02:53,080 --> 00:02:56,799 Speaker 1: we haven't seen the full effect of higher interest rates yet, 52 00:02:56,880 --> 00:03:00,440 Speaker 1: and that will be the lag that goes into effect 53 00:03:00,480 --> 00:03:04,000 Speaker 1: next year. What we heard from consumers is they're thinking 54 00:03:04,000 --> 00:03:06,920 Speaker 1: about not buying the big goods that we saw in 55 00:03:06,919 --> 00:03:10,480 Speaker 1: the past, but more focused on services and vacations and 56 00:03:10,520 --> 00:03:13,480 Speaker 1: those kinds of things, and not really buying those big 57 00:03:13,520 --> 00:03:17,360 Speaker 1: ticket items like cars and washers and dryers and things 58 00:03:17,440 --> 00:03:20,680 Speaker 1: and and and and stocks and cars, washers and drivers 59 00:03:20,720 --> 00:03:25,800 Speaker 1: and stocks. Not not buying you think, and is that likely? Well, well, 60 00:03:25,840 --> 00:03:29,239 Speaker 1: you know, I don't. I think that the consumer has 61 00:03:29,280 --> 00:03:33,840 Speaker 1: actually still been investing in the market. So did you 62 00:03:33,880 --> 00:03:37,560 Speaker 1: say stocks, Yeah, it sucks, Yeah, I think it was. 63 00:03:37,560 --> 00:03:40,120 Speaker 1: It kind of just a playful question that really basically 64 00:03:40,240 --> 00:03:43,720 Speaker 1: talked about obviously markets and people buying, uh buying or 65 00:03:43,760 --> 00:03:47,160 Speaker 1: selling equities. But I'm sure my colleague was shot as 66 00:03:47,160 --> 00:03:49,560 Speaker 1: a question for you, I wanted to have have a 67 00:03:49,640 --> 00:03:52,280 Speaker 1: think about this arena because you know, we're looking at 68 00:03:52,920 --> 00:03:56,200 Speaker 1: SMP five under targets and web people were positioning themselves 69 00:03:56,200 --> 00:04:01,200 Speaker 1: and analyss overall going underweight cons You miss staples. Doesn't 70 00:04:01,280 --> 00:04:05,920 Speaker 1: that surprise you? If we're heading into a recession, it 71 00:04:06,160 --> 00:04:10,000 Speaker 1: does a prize. It is surprising because we know everybody's 72 00:04:10,000 --> 00:04:14,320 Speaker 1: talking about a recession, so the typical recession plan would 73 00:04:14,320 --> 00:04:19,159 Speaker 1: be consumer staples. Right, But um, I think just right now, 74 00:04:19,200 --> 00:04:23,040 Speaker 1: what we've seen, especially this year is within each sector 75 00:04:23,279 --> 00:04:27,160 Speaker 1: and category, there's been a huge divergence as far as 76 00:04:27,200 --> 00:04:33,120 Speaker 1: equity returns. So not writing off all of consumer staples, 77 00:04:33,160 --> 00:04:36,719 Speaker 1: but looking carefully to where you're investing, and I would 78 00:04:36,760 --> 00:04:39,880 Speaker 1: say that in every sector that there is, there's been 79 00:04:39,920 --> 00:04:43,240 Speaker 1: this huge divergence and returns with the insectors. So it's 80 00:04:43,240 --> 00:04:47,479 Speaker 1: really looking within the sectors to say where are the opportunities. 81 00:04:47,520 --> 00:04:50,800 Speaker 1: And like you said, it is somewhat confusing that people 82 00:04:50,800 --> 00:04:54,120 Speaker 1: would not look to consumer staples because if we think 83 00:04:54,120 --> 00:05:00,360 Speaker 1: we're going to go into recession, then yeah, yeah, Lorene, 84 00:05:00,400 --> 00:05:04,360 Speaker 1: I'm kind of curious. We'll go ahead and finish your thought. Yeah, 85 00:05:04,440 --> 00:05:07,000 Speaker 1: so an area that we like quite a bit would 86 00:05:07,000 --> 00:05:09,599 Speaker 1: be on the industrial side. So we think, you know, 87 00:05:09,720 --> 00:05:12,920 Speaker 1: it's more of a value place still versus a growth 88 00:05:12,960 --> 00:05:16,840 Speaker 1: play in the market, and we do see opportunities in industrial. 89 00:05:18,320 --> 00:05:21,520 Speaker 1: I'm trying to think about how the economy and society 90 00:05:22,160 --> 00:05:26,080 Speaker 1: look after we get through this, and I'm just wondering 91 00:05:26,400 --> 00:05:28,880 Speaker 1: whether or not you've had a chance to think about this. 92 00:05:28,960 --> 00:05:34,440 Speaker 1: Are we moving to yet another new kind of new normal, 93 00:05:34,560 --> 00:05:40,000 Speaker 1: one with higher rates, more inflation, and workers um that 94 00:05:40,120 --> 00:05:46,280 Speaker 1: have a lot more flexible hours and approach to our Yeah, well, 95 00:05:46,360 --> 00:05:48,920 Speaker 1: on your question, what I've been thinking a lot about 96 00:05:49,320 --> 00:05:53,599 Speaker 1: is that when whenever we come out of a bear market, 97 00:05:54,600 --> 00:05:58,480 Speaker 1: there's usually new leaders that lead us out and new 98 00:05:58,560 --> 00:06:02,600 Speaker 1: leaders that continue. So many investors are going to get 99 00:06:02,640 --> 00:06:05,720 Speaker 1: stuck in some of those older names that did really 100 00:06:05,760 --> 00:06:09,320 Speaker 1: well in the past cycle that may not be the 101 00:06:09,400 --> 00:06:12,640 Speaker 1: leaders going in this next cycle. And what I see 102 00:06:12,920 --> 00:06:17,400 Speaker 1: is I think AI is finally coming of age. We've 103 00:06:17,400 --> 00:06:21,320 Speaker 1: been talking about it for thirty years of how AI 104 00:06:21,480 --> 00:06:24,960 Speaker 1: going to really be implemented, and it finally is the 105 00:06:25,040 --> 00:06:27,479 Speaker 1: implement And like you said about workers, one of the 106 00:06:27,480 --> 00:06:29,360 Speaker 1: things that companies are looking at is how can they 107 00:06:29,440 --> 00:06:32,960 Speaker 1: use AI to decrease the amount of labor that they need, 108 00:06:33,360 --> 00:06:36,440 Speaker 1: and with changing labor force and not as many people 109 00:06:36,480 --> 00:06:39,600 Speaker 1: working and all of those things. So you think AI 110 00:06:39,600 --> 00:06:42,279 Speaker 1: is of age and looking at those companies that are 111 00:06:42,920 --> 00:06:47,159 Speaker 1: you need to see different companies purchasing other AI companies 112 00:06:47,160 --> 00:06:50,120 Speaker 1: and implementing them into their company and then what can 113 00:06:50,240 --> 00:06:53,520 Speaker 1: that do to our society to help us move forward? 114 00:06:54,080 --> 00:06:56,600 Speaker 1: But what are you actually seeing that in terms of 115 00:06:56,640 --> 00:07:01,920 Speaker 1: that space? Then, I mean you're u seeing real value propositions. Well, yeah, 116 00:07:01,960 --> 00:07:05,680 Speaker 1: I mean you look at what's uh, you know, Google's 117 00:07:06,040 --> 00:07:12,320 Speaker 1: definitely outfits working on this implementing AI, at Microsoft buying 118 00:07:12,480 --> 00:07:16,680 Speaker 1: open AI. And so we see these different companies that 119 00:07:16,720 --> 00:07:21,880 Speaker 1: are purchasing other companies or really thinking through AI, um 120 00:07:21,960 --> 00:07:26,280 Speaker 1: Rockwell automation. Looking at that all of these kinds of 121 00:07:26,320 --> 00:07:28,520 Speaker 1: companies and what is that going to mean for our 122 00:07:28,520 --> 00:07:33,560 Speaker 1: society and how can they be leaders going forward? And 123 00:07:33,600 --> 00:07:35,440 Speaker 1: here's a little bit of a quirky question as well. 124 00:07:35,480 --> 00:07:37,800 Speaker 1: A lot of these big tech companies have become almost 125 00:07:37,960 --> 00:07:42,120 Speaker 1: like staples. Would you expect them to start paying dividends 126 00:07:42,160 --> 00:07:47,000 Speaker 1: and higher dividends? I think dividends. We've seen many companies 127 00:07:47,080 --> 00:07:51,600 Speaker 1: move towards dividends, definitely as a way to pay back investors, 128 00:07:51,640 --> 00:07:55,680 Speaker 1: and and and investors right now have have been looking 129 00:07:55,760 --> 00:07:59,520 Speaker 1: for that as income was lower in the fixed income space, 130 00:07:59,600 --> 00:08:03,600 Speaker 1: having some kind of income from equity perspective. I think 131 00:08:03,600 --> 00:08:07,160 Speaker 1: that that trend will continue. I definitely think so. I 132 00:08:07,160 --> 00:08:11,480 Speaker 1: think investors are looking for income and companies I think 133 00:08:11,520 --> 00:08:14,960 Speaker 1: will be looking at paying more dividends. All right, Loreen, 134 00:08:15,040 --> 00:08:17,800 Speaker 1: thanks very much for joining us. Loreen Gilbert, CEO at 135 00:08:17,840 --> 00:08:22,040 Speaker 1: Wealthwise Financial on the line from Laguna Beach. She probably 136 00:08:22,080 --> 00:08:24,679 Speaker 1: was out on the lanai or out on the beach 137 00:08:24,920 --> 00:08:27,800 Speaker 1: picking her stocks, getting ready for our interview.