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Planstrong Financial Forum 05-21-16

May 22, 2016|

"Smart investing, simplified"

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

And. From the plan stroll in the broadcast studios he would still play and strong environmental forum where you're hosed. Jim Murray Campbell president Roh plans strong investment management. Cold portions it's time Bruce Morton investing. Symbian phone. And I lived in her review introduced along with Paul Parsons this was struck financial forum and Bo you we've just to. Before the show started they were talking about all the calls you've had coming in for this really. Fund conference Camille play and let you know it's our turn to get excited he's been telling you a little bit more each week about what's going on the comforts I know. It's a source that I jumped right into it didn't you have time to talk but the weather that's my daughter graduated from college hero none of that yeah I somebody's house yesterday all this happened. Big lots of stuff that we could just about major happenings in the harbor I just financial have yet so that's on both sides yeah but the conference is just so exciting it. It is and you know it's more than exciting it's incredibly meaningful. I mean I I have to tell you that the whole. Our catalyst for me doing some by the way this is the only seminar on doing our conference on doing this year and I haven't done one for year after the reason I'm doing this is because I really think. But this message is so important for investors to understand and frankly so few who really do rule and the reason I say that is because. I've gone to several conferences on this where leading. Experts in the fields of technology and healthcare are talking about what's coming next. And the basis for that. And I have to tell you that disrupt Ers are almost overwhelming. And it's funny because you don't even the Wall Street Journal did a I forgot how Beagle was was huge hundred page addendum to one of their papers was called a special addition or something. Odd that was titled the future of everything was done a year ago and you know I think it was almost too much people couldn't absorb it. But what they did was they talked to some of the real industry leaders euros soccer berg and these cells that some of these other people. About what was gonna happen in each of their particular segments or sectors. Are there a guy talk much energy what was gonna happen there what was gonna happen. We had armed social media what was gonna hapless communications. And and most importantly in computing power and artificial intelligence and also things like DNA sequencing what's gonna happen. What is happening and what the future is for medical care. I it's absolutely stunning. And so much of this is happening because of the acceleration. In our ability to compute. Bigger and bigger amounts of data in quirk or amounts of time for an low cost the ball this is the science show it's an investing show you know into how do you combine those two well and like he's combined those two there's a huge reason why because I am I. Absolute believer now that the you know that the person that termed. Do this kind of phenomenon disrupt durst well. There's a lot of disruption that's gonna happen and it quote you know Bob Dole one times they are changing only what Dylan imagined aren't even close to the kinds of things that we're gonna see and you know I've done a couple of ads. For our conference as well and and let's just talk about a couple of those 61 of all let's talk about what's your today. Did you know that half of all auto manufacturing jobs are already done by robots. Today had already cash. Are done by robots. At Sears save yourself. Wow that's okay that impacts people. Did you know that there's eight keyboard factory that IBM how's that doesn't have one human being and it. I want I know no one has called you lights off facility. Mark okay and yet stuff comes out the shipping and mark in all areas they are that are brand new key ports interest okay. And see here that is say. Okay that's pretty impressive but you know those are little things on the periphery hey look I'm a lawyer comic doctor Rama. Of the stops and impact me right wrong really wrong let me give you a couple of examples there. Did you know that with artificial intelligence. Half of all the jobs. Are gonna be gone in the next ten to twenty years that's according Oxford University Oxford University Oxford Cambridge are the two. Powerhouse universities in the UK marks you know similar dark turn of the Harvard Yale and Princeton Stanford crowd here in the United States and so these people are not done. Okay and the air sank half of all jobs when they (%expletive) jobs they don't mean people would assembles stuff that's much of that's already dot Miranda. You know what it's gonna be. It's gonna be nurses it's going to be doctors it's going to be lawyer Ers. All kinds of things are gonna be automated because of artificial intelligence. And if you say to yourself wow now did not your turn but wholesale change in our economy and what it also does and is it creates winners and losers from an existing perspective so to your question again. Why do we care about this as investors. I just I go back to would you like to know that ten years ago fifteen years ago when Amazon was starting. On and doing this thing called fulfillment of books. What they really had a mind and ultimately you know what they had in mind you know what. Sergey Brin and Larry Page had minor cool it wasn't a search engine it was artificial intelligence now. And they're using it to be able to make better and better software. But ultimately learns itself it. It doesn't need to be programmed anymore actually teaches itself. Through experience it's cold machine learning. If any of the sounds Florence York's most of this sounds foreign to you. I can't encourage you more. To go and listen to what we have to say I promise. It is not a a tax fast what I will show you first of all I have good video extra and I have videos of actually how this stuff is going to be used in the next couple years when I say videos I mean I'm gonna show you how autonomous driving cars I was one of those guys it's a oh cool cares if they can make a car drive by itself. What got some nos for at. You character taxi driver New York City because that medallion that you paid several 100000 dollars for is gonna be useless right OK okay your art and you're running jobs starting in. Pittsburgh very very soon. We doing. Autonomous driving taxi cabs and and it's starting very soon as just a few out there but they're going to be starting Hoover's doing it in and some sort city staff. Shall we write and if you think about that and then you think yourself Walt geez why did bill Ford from Ford Motor Co. Weigh in on that Wall Street Journal special the future of everything what does he weigh in on the topic of but economists driving cars and the impact of artificial intelligence is going to be having on how many cars she's actually able to sell because in the end you know what there's going to be a lot of people not only are they not going to be driving anymore than you can own a car. They're gonna share her car but cars used 5% of the time. 95% of the time it's it's in the parking lot the parking garage you work your car park your whatever it's not used. Okay well if and by the way it's pretty big asset as an you know 304050000. Dollar some people a 100000 dollars for car now sits there on my cars it's. In the garage and in my office all day long and soared in driving moments in the garage or home all right there you go and it's use probably less than 5% of the time truly drama passion OK and bill Ford if you own Ford Motor Co. stock or your own G camera you don't pick one. And you say oh my goodness all the sudden. And they're going to be economist driving side are the right software in there to be able to make these things work or else boy I'm not going to be able to compete Gary there. All of a sudden you're really looking at wholesale change not only in your company putting your industry and that's the kind of change that's coming and you know all I can tell you this. Please take a look. At this seminar at this conference we will have videos of how the technology works how it's actually working today. And more also gonna allow our. I attendees to have a live demonstration themselves. They're gonna try one of the technologies themselves on the spot race. I'm going to afford to apologize for my folks whom when and where it's coming up June 9 at 6 PM in Wellesley. And just call Paul's office to reserve your place at this conference June 9 6 PM in Wellesley. The numbers 8889727526. That's EDD 8972. Plant and. Obviously one of the things we're gonna talk about first of all this conference there's no charge for this conference is no obligation this conference we're trying to sell you something. But we're trying to do is talk to a little bit about. Are these your investment portfolio in any way. Structured. To be able to accommodate some of these changes again I go back to if you knew what Amazon was doing fifteen years ago. Which you've considered investing in Nam I sure would sure right now okay well what I'm trying to see you now is this change is coming. What were doing. Is actively looking to see who the potential winners and losers and so like at the winner is okay those are people would develop suffer record the losers. Although most of the businesses that are gonna get disrupted. And you know you think about it. Bill Ford Ford Motor Co. Either he leads or he gets out of the way it's gonna be one of the two and frankly you wanna get a pretty good feel of not only what are the winners but oh my goodness are there are some companies out there that are not keeping up or stock in the past. And as a result they're probably not gonna survivor there certainly gonna survive in a much lower valuation. And volume of folks in the office today and take phone calls don't lovely Saturday afternoon so even though it's -- make the call anyway if if you get a busy trying to gambit rampant will begin answering changes the message don't call him back. The number again 8889727526. That's EDD 8972. Plan and once again there is no charge but that you really do need to make a reservation for this because this thing will be most likely sold out there won't be any. Room for you so there won't make sure they reserve your seat. 8889727526. Our Paul we've got some news stories and another busy week at the start for the markets when we see this last week. And by the way I promise you that several these new stores are gonna play into exactly what we're gonna talk about this conference and yeah I mean is apps when you start to the tune yourself. To what's happening I wrote in the world. On you all of a sudden start to look at these stories an entirely different light you know what we've looked at them almost incrementally cat right. You know whether it's you know Amazon did that announcement of you that voice activated our act oh yeah remember that I have to tell you do I have and not so in -- looked so cute and it does some nice stuff and it's good cocktail parties and say hey -- how well like so what's the Deborah exactly I'm sunset and all that's kind of cool yeah. But when you start to think about it when I start to talk about this at the conference you're gonna say oh my goodness that's a lot more. Then just something that's Khatami the temperature and if that's the cool part about this you start to figure out where things are going and the whole point again is to identify. Which companies ultimately probably gonna lead the way. Paul we'll get to the martyrs we come back a lot of information coming out. Moon return we will give you some of that information start off with the news you need to know as an investor to play a strong financial form. This is all Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what I need to take a look at your investments and retirement plan called my office of 80889727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go SIPC classroom investment management is an affiliate of mismanagement grouping things you can do you Washington street domestically and six. Hi this is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance or investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter watcher invested in if these things matter to you. Call Paul Parsons at planned strong investment management to learn more call 888. 9727526. Hiring the right advisor could be your best investment. Or visit planned strong dot com. Securities and investment advisory services offered through next financial group linked member fender SIPC plans to investment management is not an affiliate of next financial grouping and is located at ninety to Washington street Dedham mass. Our. We're. Okay. Crumbled on strong broadcast studios and the epicenter of definition yeah. This is no plans strong on national forum with the all portions president of planned stronger investment management. And I'm Dan Garber will Paul Parsons along. Suddenly Pollard just thinking during the break. That about this that you're talking about the conference coming up and Utah and vehicles sold out Arthur Livermore brother let me just remind folks of phone number. It's DVD 9727526. To reserve your place from Paul seminar the future of everything coming up June 9 at 6 PM and don't let's. Thursday night at 6 o'clock right after work just shoot great over there's no charge we know charger and we're not trying to sell you something on you know so many seminars and conferences and forums at all. Are all an effort to sell you something typically and a new woody by the way there and it's all cloaked in the opening of all will meet your retirement needs kind of thing. If that's stuff drives me nuts this is a conference that specifically on the future of technology. Of our health care of energy and a lot of things I think people have no idea how. Drastic the changes and how quickly it's coming. Right that number 8088 point 727526. And call now there are people Paul's office so my echo. Sometimes it's. Which is an Amazon product that was on shockingly exactly and it. It apparently is always around you know at first I thought well the only work of our wanted to work but yeah. It's always listen isn't supposed to have a wake up the word right yes what an accessory is her name yup and but she sound involved will go up and -- and I have a have a small thing going is everybody in primaries okay with no she's not Mary's. OK okay she was to throw Lex opened an office Alexa is always listening yeah he hears the word the kind of sold like Alexis asks may be from the TV I may be Mary's they're talking about something else yup she's prince will be schools was ready type about a teacher or student with a similar name yes. Well Lex will turn on to say I'm sorry I didn't understand your question about how he gets a little more clearly weren't talking to you. How do you write little weird but I think about it but think about the other side are you use it can in your house today. Didn't news weather and music it's in music but you know it's voice activated yet he's instead of going your computer typing on a laptop or something you just say Alexa dot you know plays so and so what I got I've got to play lists are my iPhone and my children tags as an automatic yes right yes and it also has its own Amazon music that -- taken to a need to have that service so if it's if it's one might play let's find Port Angeles an artist that Amazon has lose almost any art yes and I can say. Play music by serves as an artist and boom mccombs. We know works on next. So it's gonna tie into other things and a tie and also for example can be seen those nest. Yes thermostats are your home devils everybody likes and yet they do and and so for again for people don't know what to do is it's an ability to control the temperature near home remotely typically for me you're you're a computer or your right your your phone and yes actually you don't think of it this way. You're you're driving up you have a little place a Condo up and Conway New Hampshire Sami go skiing a lot. You know you say oh geez I walk into a freezing well you know what fifteen minutes half an hour before you get there you can. Remotely turn the the temperature up to 65 or 68 degrees he Walken nice warm place or you have the lights on or whatever else well a lot of that. Is done today by a laptop but in the future that can be done with Alexa would just waste activated control thanks so think of it this way. You can't say. Alexa which kicked turn the temperature up to 72 little chilly and I don't auto up into the next room and do it exactly such a hassle to or if it'll also be tied tied in your home security system and you could say Alexis the window open. Ma and and it'll tell you if the windows open and you know he does so that your home security isn't secure. You can turn the thing on rock you can you can not say all Alexa top mute that god alarm axis the cat. Are whatever I mean think about it that the future of this is voice activation. I'm is gonna rapidly. Replace what we do today by typing think about what people in the old is set to hate. Oh yeah he got tight in the stuff and everybody had to learn how to type program the good news was one of the most important courses I ever took was an eight grade which was two terms of type thing. But you know that may actually no longer be necessary because eventually you're gonna be able to speak it. And it's gonna automatically recognize it's gonna I have a conversation and it's gonna do what you say to joke and so it's really are fascinating we are this is he vaulting tuna. Well its interest and it's it's it isn't using that ties right in with the subject of the upcoming conference it does and and not many of the stories we have today actually well so but let me start with what happened in the markets this week. A door down slightly and you know wasn't a great week wasn't it a terrible week up a lot of it had to do with the Fed which I'm gonna talk about a minute. Yields on the ten year US treasury increased from 175. To 185 a huge part of that Kenny. Guess what the fad and and the same time yields on the German ten year were pretty flat at next enough thing. And the ten year Japanese treasury yield actually increased a little but still in negative territory. So I mean you know worked in law law land here with the ultra low interest rates there are a little bit higher because of what the fence and again I'll talk about that a second. Oil prices rallied back this week west Texas now is almost at fifty bucks a barrel at 48 bucks a barrel up from 46. And that was in spite of the strengthening dollar guess what associated with a fat. I'm but it's a has much more to do wind up production outages in Canada and Africa to continue to persist. And so the price goes up if supply is is questionable or town that's sense of what's going on there. And then we get some important government data that came out and if I can just use one phrase to kind of capture the whole thing. I say good at best. Okay there's is that overwhelmingly. To really know so you know I. It starts with consumer inflation. It jumped a bit but most of it was gasoline prices we've all seen that as the price of oil's rebounded guess what the price of gas has been popping back up. But excluding energy the increase was much more in line with the Fed's overall expectations of around 2%. So you know you look at Agassi you'll consumer prices are up that's good because we've been looking for some inflation. I'm there was a reasonable amount of inflation but not too much OK and housing starts and permits they picked up in April. But it reflected a moderate pace that you know what's it about an annual rate of one point 11 point two million. New homes being started and permits being armor requested. And on an annual basis. At the moving average so if you look at it over time it continues to be pretty flat it's at a good level compared to work was an own 9101112. But it's been pretty flat this whole your most of this year or so certainly not on growing. As far as expectations of new homes are concerned. Industrial production data actually had a pretty good number and a strong headline number but a lot of it frankly it's part of industrial production. Is utilities. In other words you know how much energy de dupe people consume. And that's weather related to great degrees and Chile well we've had you know el Nino the whole time so the north has been chillier than norm shall people have been. Using more energy off for heating and a historically might otherwise deal. So again you look at Sewell is a good number. And even some of the other data that came out with that like capacity utilization I look at capacity utilization because that's a really good. Indicator of what's gonna happen with the inflation. And capacity utilization did come up a bit but it's still really lull I don't still at 75%. And that's still well below the levels that we had in 2013 to 2015 seconds so I look at inflation and ago. Yet there was some but boy there are a lot of reasons to believe it's not exactly gonna overwhelm us. And then we have another manufacturing report the Philadelphia fed came out that we had to some contraction. In the mid Atlantic states this past month not great news. I'm nor unemployment clinic claims came in at 276000. Pound again not a bad number actually pretty good number so it's not the people are getting fired its that the economy continues to kind of Groban little at a low level and I think that stole the concern of the market's overall is this. Unimpressive. On recovery as far as really seeing blockbuster growth we're not seeing anything close to that. So the big surreal it was out of the Fed this recast so you won only talk about that era. So that the Fed it who bought themselves some room to operate for the June meeting they kind of surprised the mark they did surprise moon this past week. Until now the market greatly discounted the probability that the Fed was gonna raise rates at the June meeting. Because primarily of the slowdown in Q1 GDP that whereas put pathetically low number but. The Fed came out they said you know what we think that slowdown was temporary and may even be reporting issue. And we also think that risks including the Braxton I mean a global risk and we don't think they're that profound. And so as a result they kind of put back on the table in in a more forceful way. That there was a possibility. That they would raise rates in the June meeting. And just give you an idea. Probabilities. Before this past week there was a 4% probability of a read increase in June. That number jumped up to about a 34%. Increase a 34%. Probability. After the meeting because of what the I'm. What the Fed said in their minutes and subsequent. Discussions with other fed governors around doing the media circus tent is offense seeing things differently than do and we are here Paul and I are you why I think what they're doing is they're trying to keep beyond the market on past and what they're trying to say you guys don't understand 25 basis points are point 25% increase in interest rates. Isn't that much current and you know want things aren't that bad. That we should keep them at you know if you will bargain basement rates and I think that's you know something you when I've talked about in the past. It's not that things are so good it's that they're not so bad but can you essentially. You know continue to have that you know life support tight measures being done by the Fed and every one else. Or should you know it's time for this economy. Too it so you know work a little bit on its own because what the Fed worries about. Is long periods of any kind of support whether it's fed supporter fiscal supporter or anything else. Inevitably creates bubbles asset bubbles and asset bubbles or what everybody fear Ers to a great degree because a bubble pops in when cops. It it tends to pop quickly and it tends to pop suddenly and severely. And so I think they're very concerned about that and as a result of saying you know what guys. Would you know if things aren't so bad we may still wanna raise rates in fact we don't think things are so bad so were putting you on notice that there's a possibility. Even a probability. That we will raise rates more than the market price and in the past. While we've got a lot more stories coming up including air went from Tesla and Google will get to them when we return just once again folks this is a good time if you call Paul's office to reserve your place for the upcoming conference on June 9 at 6 PM in Wellesley the future of everything balls to free number 8889727526. We'll be right back its plans are financial for this just. All Parsons president of planned strong investment management and you're listening to them plans strong financial forum on WRKO. Boston's talk stations. If you like what you hear on our show and what I need to take a look at your investments and retirement plan called my office of EDD 89727526. That's 888972. Plans to. Hi this is on he Nelson. If you're fifty or older here's a suggestion. Commit to getting your financial house in order over the years you worked hard took chances made sacrifices. And built up as much wolf as possible so you'd never run out of money in retirement. Well. Now it's time to get organized and to make sure you have a financial plan. Who protect your retirement. Rich your financial life together. Call Paul Parsons a plan strong investment management. Just schedules financial checkup call 8889727526. That's 888972. Plan commit to getting your financial house in order. Call 888972. Plan or vision plans strong dot com. Securities and investment advisory services offered through next financial grouping member former SIPC plans to investment management is not an affiliate of next financial grouping and is located at 980 Washington street Dedham mass. Finally your really your show is not trying to show you insurance for a new movies. This is no plans strong financial forum quick call portions. President Roh plans strong investment. I'm Jim Colbert alongside. All and a please take this opportunity to remind you that this is a good time to call Paul's office to reserve your place at the upcoming conference June 9 at 6 PM in Wellesley it's called the future of everything. Is there's no charge for this but. Course you do need to reserve your place the toll free number eight DD 89727526. That's 888972. Planets. This is yeah this is going to be Thursday June 9. Which is a few weeks from now I don't tax can be held wells a country club RS on and we only have about a hundred seats. And what we're trying to do is we really make people aware of what is going on that change that's coming because. You're not talked about this little incremental changes all around us. But there's something much more significant underfoot sure and it it's going to impact we believe a whole bunch of existing companies and new companies had. That's what we're gonna talk about an I have to tell you we even have a demonstration that people who attend. The conference are going to be able to try some other technology themselves. Firsthand. Had that is exciting stuff once you get it over number eighty 89727526. Our Paul so we're talking about the Fed and how they basically city and the numbers aren't so bad in the US US light so they said you know did that back on the table goes the possibility of a slight bump that's correct and but what about. You said in the US so what about around the world won't resume. Well you know what's funny Japan actually had some good news that came out also this past week. And you know we've been talking about both Europe and Japan. Has having a significant amount of central bank's support as well they had their own version of quantitative easing going on there. While we're starting to tighten and that's what you know interest rate increases are their work cut considering. There are actually a couple years behind us offer as far as economic recovery is concerned. And so they still have huge central bank's support of them where their printing all kinds of money. Are to be able to try to sustain and and a charge up. Dairy economy's well for the first time in awhile we actually got some good news from Japan they reported strong Q1 GDP growth. At an annualized rate of one point 7% might say. Well that's under 2% at doesn't sound terrifically good Bullock beats the minus one point 7% they had the prior to their direction it is certainly in the right core. And a lot of it was because of improved consumer spending also very important because. You know 70% of our economy's based on consumer spending 60% of theirs is based on consumer spending that's incredibly important. But the air consumers. 212. Participate and it's shut talks a little bit about their confidence as well. That band helps them with investor confidence as well. I'm now on the growth comes just past their prime minister odd day. Is thinking. About whether or not to should be more stimulus more stimulus packages. Are to be unloaded on the economy cause frankly there's a real concern after the Q4 numbers at oh my goodness all stocks still some work we need to do more. On and frankly one of the biggest things that I think about is whether or not they should implement. Phase two of this I sales taxes national sales tax. Disposed to go win in April of 2017. And Hispanic you know it's gonna go from I think it's 7% up to 10%. National sales tax. If you know the problem that a lot of people as sad as when they implemented that first national sales tax. Increase it really hurt the economy and and this actually bring setback on the table why would they do it if their economy strong enough but they ultimately have to do is try to get out of debt. I'm never a massive amount of debt and worse they have are incredibly aging demographic in Japan even worse than the United States. And so yeah a lot of older people and fewer people working to support them. And so it is important for them to figure out eventually power they gonna pay for all stuff because ultimately at some point the debt becomes sole. So much and that they literally can't support it anymore so it's you know I'm in it's good news as as it relates to that the GDP growth was good. It's a little bit tenuous as maybe it was a little too good. And as a result maybe they will consider doing this the second sales tax increase. Policies are you re create another story out of Tesla not all good what's going on this week. So this an interest in week for Tesla. Arm to Tesla made the news by announcing that it's gonna sell one point four billion dollars in additional stock. To help finance production expansion associate with a model three we've been talking about the model three for awhile. They actually went to market. A this past week an issue more stock. Armed you know it's interesting because. On some analysts are getting nervous. Up over two castles plans to produce over half million cars during 2018 and a million cars a year. By 20/20. And yet they have to do that to be able to justify. Their valuation. On and you know Tesla. Has delayed some of their hard deliverables and and as a result there's a concern doctor there really is. I can save that and yet the stock price actually recovered nicely on this news which is Connor to. I'm so I look at it and say. You know the believers in Tesla continue to believe they believe that yup this is another thing there are a lot of orders for these we have over 400000. Orders for the model three at this point. And investors are looking and sang all the demands they are now we just have to deliver and I hoped that the investors are not. Understating the difficulty of ramping up. From zero to half a million cars a year in three years because there that's essentially what they're doing going for 50000. To 500 now. Ten fold increase in output. In a three year period that's a big big interest and it's not just the cars it's also. The components of the cars including most importantly the batteries and and sell making mass production of these batteries in addition of these cars. I can tell it's a real challenge and yet I gotta tell it the investors are out there and investors like it and they've been supporting the stock they think they can go. Ball in keeping with the theme of your upcoming conference the future of everything some news out of boot eleven to do with. Artificial intelligence well speaking of which bought if we don't mind before I go to Google I wanted to mention one more thing among tassel. You know I've talked about Tesla being a battery company is not really car company it's a battery company. It's actually a little bit of something else as well and this is in the spirit of the upcoming conference. Tesla is actually. An artificial intelligence company. Through and the reason I say that is because what they're really doing is in all of their cars. They are already putting in the software to make the car autonomous driving real yes. And so you think about that. And what they're doing is they're making sure that they stay up with where this trend is going it's not just how do we capture energy. A which ultimately will be used for your home. But also how do we keep up this trend of autonomous driving cars and Tesla. To their credit is making sure that they have the software included their cars start fully participate in the move towards Thomas driving cars small ball that's another good reason to come to your conference and target of this kind of artificial intelligence and why it's important for investors to know and it's coming it's coming it's all around us and and speaking of which let's talk about Google right okay. Google is betting it can outsmart rivals on new products using artificial intelligence okay. You know we talk about these virtual assistants like god the one that you use my echo yup now which is produced by Amazon. Well there are a bunch of them that are also using and it's not just these virtual assistance it's also home messaging applications swell this competition is rapidly. On coming to market and we're starting to see it. Now to a new assistant that Google has is the next iteration of search in a global made all their money. By having the best search engine out there are all apologies to all the other providers are accused Google forever true it's my defaults I was search engine. I I think their algorithms are unbelievable 'cause they get the answer to what I'm looking for every time and okay. Well here's what's gonna happen instead of us from having to type began and the pulpit article force. Now where they're going is that the assistant is not is gonna get the answer for you. OK so it's no longer going to pull up an article or stream of articles. But you can look at and say yeah that's probably the wanna I wanna read instead the artificial intelligence is colonel is going to be Smart enough. To be able to say when you say hey cool really invented the automobile. Google will actually answer the question rather than putting up. Ten articles on the first page of weather is. Bans or whoever else not many of our Don they will answer the question. And that and it's gonna be done through artificial intelligence so they're making the leap. From being a search tension. To being a search engine that gives you the answer present the end when you're searching for something you're guess which searching for. An answer to our OKQ and what they're doing now is the building up the artificial intelligence capabilities to be able to go from search now to literally selecting the answer for example Google also announced they have a new high speed chip what's rumor OK so. First of all Google is famous because one of the things they did was they created. On this software program called alpha go and we're gonna actually talk about this in the program alpha go. Was this our software program that took on the world champion. In an Asian popular game called go. And go listen nineteen buying nineteen kind of chessboard and that you try to take it it's a little rocks are on each of the up but the squares. And ultimately which are trying to do is take all of your opponents rocks and get as much real state on the board as you can with your own well nineteen buying nineteen is a lot bigger grid than eight by the grass is a typical chessboard right. And yet what they did with your artificial intelligence act Google with the software program was it learned very quickly to defeat the world champion. In golf using artificial intelligence. How did they do it well date but found a way to build chips that actually accelerate the learning process and that's what Google has decided to and by the way Google isn't alone. Microsoft IBM and apple are all so. Building their own chips that's supplement the rock computer chips to be able to make artificial intelligence work. Better faster cheaper. From amazing once again I think he's a good time to drop in that you're the reminder about the conference fault the future of everything coming up on the ninth of June is just couple weeks away you can call now. And reserve your place told 380 89727526. Is no charged. The united 6 PM the Wellesley country club 8088972. Plants you can call now all return we have more stories and investors need to know is a restaurant financial for this just. All Parsons president of planned strong investment management. And you're listening to them planned strong financial forum on WR KR plus news talk stations. If you like what you hear on our show and what they need to take a look at your investments and retirement plan. Called my office at 808897275260. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member and as I can sequester investment management and filling in this country grouping that is located in Washington street domestically and six. I this is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance for investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter watcher invested in if these things matter to you. Call Paul Parsons at plan strong investment management to learn more. Call 8889727526. Hiring the right advisor could be your best investment. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group member and SIPC plans to investment management has not affiliate next time think it's OK I need to Washington street demands. Who says financial talking viewed signing and be informative. At least it's informative its plans to own financial forum where bold portions of the president's bold plans stronger investment management. Yeah. Yeah change equality we're very excited this week I think we are so I think this week. For once it's a blessed are we as a form I'm getting Gerber Paul Parsons alongside me and we just talking about the future of everything conference coming up on June 9 at 6 PM of the Wellesley country club. You can call balls off the snout to reserve your place tool free 8889727526. That's ADB 972. Plan to call now there's no charge put they would like you reserve your place because are limited seats and that's actually true to renew under paying attention to we're learning a lot as we go along also many of the stories this week have to do with. What's happening in the future get used to it you know we've been talked about figure out exactly. We're very broad Google yup there's another Google story in the news this Greek and today. What was going on with the sport okay I actually of whom were going to origins and again this is why. Whether it's Amazon or Google is some of these companies are incredibly innovative brand. As I said the the pace of change is accelerating right now and it is. It is not just creeping into our lifestyles right now but it is going to move into our lifestyles to remove and pretty rapidly growing and a lot of that so much of it has to do with what to talk about this conference and backs why am doing the conference because. I really feel that. People don't. Can't it yet they don't get the fact. That computing is about technology is really about to make a wholesale change in our lives. And you know we've seen it happening already think about all the changes that have happened in the last ten years canny remarkable you know digital what are Amazon prime was tenure job holding existed Barack. Yeah I mean think about how let much less you shop at bricks and mortar store today then you dead. Ten years ago significant exactly can you imagine ten years got somebody said you hit Kenny. I have this thing called Amazon echo and and you're going to be able to talk to this thing. And it's going to be able to play. Songs out of your playlist from your iPhone. And you're actually going to be able to ask that what the weather's doing an all kinds of the Senate's gonna answer. You are giving the top news stories by the way get the tube and losers I can give BBC I don't get. NPR. You were brought Woodrow mom my new storage room and you know what it's going from nice to know kind of things where you used to. You know black type on a computer and look at at a screen. Tonight you don't have to do that anymore. Eventually you're not gonna have to do something for other actions to occur and that eventually is coming quickly and as I said a couple of examples. You know those thermostats in your house now that are starting to get connected like Nast for example the product they are. I'm you're going to be able to say to your Amazon echo you're gonna be able to say a lax yeah. KR which in my attorney that the thermostat up I'm a little chilly right now or Alexa. Are the windows open upstairs. On because your security system you wanna know if the house secure and I'm. And so forth and and it's gonna actually be able to do things for you. As well as. Answer questions for you right and that's very science fiction market all the movies view this show science fiction did people talk to walls or their kitchen whenever you ask debt that pretty much is happening already exits there it is and at what's really gonna get interest thing is it when it's not just you know stuff like that but it's a Thomas driving cars in other words cars that drive themselves there's no steering wheel and the scars. And by the way they drive much safer than the rest of us. And Danny save yourself qualifier of autonomous driving cars but I really need my own car anymore can I just share that car would somebody else. And the reason he'd consider sharing is because of what we talked about earlier in the show. Your car six most of the day you know most people say you know what that's right and that we talk about that. Sits in a parking lot a well if you clinch a lot more people share cars what's gonna happen less congestion. And you're gonna be able to re claim a whole bunch of those parking space as a whole bunch of it there's some really good benefits to society. But what if your car manufacturer. Is at a really good day for you probably less arm right out in -- probably need fewer cars. If you're gonna utilized the cars that you have much more efficiently and that means total demand for cars is probably gonna go down of the existing people don't cars aren't great so they're going to be winners and losers with. All of this stuff and so much of it as I said before is associated with the same called artificial intelligence and machine learning. These are things where you're no longer programming. A computer. A whole much stamps instead you're programming the computer to learn and it learns on its own. Okay it's a fascinating concept and it works and so anyway. In that spirit we've talked about a whole bunch of stories to date that are all based on you know artificial intelligence among the things that are happening out there are. Another story that came out this week was Google introduced their new platform for. Virtual reality guess what we talk about virtual reality and our little conference would do well we're gonna talk about it we're gonna allow people to demonstrate. Renal loud and a firsthand. Trying on a virtual reality headset and actually seat because what I think a lot of people don't get. Is when you put on a virtual reality headset and you turn your head down. The year of your view changes and looks like you're literally there are some of the early VR stuff was pretty clunky. All we have absolutely no games and now they called them virtual reality but they weren't yeah that but the new era. Is very impressive and it's and all of it has to do with guess what processing power and artificial intelligence. Both of those things are grown rapidly improving. And that's what's the difference between something that only can handle few frames a second verses a zillion frames a second and all different angles from all areas looking at what you Ers. Hypothetically looking out there inevitably it's immersive you literally feel like you're there and it's un believable and if you come to the conference you're actually get to try at you makes you all are you trying to sell lease heads I'm not selling anything the whole point of this. Is to get people to think about are your investments tailored to take into account what's going on in the future. Because my contention is so few people are now one of things that we do it plans strong investment management is we. Make sure that we are investing in companies that are forward thinking. For a part of it of their portfolio and to make sure that you participate in that why don't we do that it's not just to have good stuff to talk about a car don't hardly stuff we do what because if you think about. Who were the biggest. Winners from a stock. Appreciation perspective. Whether it's the last thirty years the last fifty years it's all disrupt Ers you know if you think about 1970. To 1999. You don't think about it it was Microsoft. It was Wal-Mart. Guy you know it went and it was a bunch of others that relate that date. We wildly. Outperform. The market overall if you look at 2002015. It was AM does not mean it was Netflix it was a bunch of others again they wildly outperformed. The market. That's why we do this to try and identify which potential companies could really benefit from this and by the way the corollary is also true. Which companies look like they're clinging to the past. They're destined to stay in the past and by the way more than likely lose significant value in the stock market we're trying to avoid the house. No we mentioned the Google stories three of them but you've seen him one more terrorists wow you know what this company that movie you're there does one via ride sharing. Google alphabet is getting into right Sherry brown directly in competition with a over. Writers will use Google's waves navigation BW AZ. And they're gonna pay 54 cents per mile to go just to and from work it's just limited to that cuts it up. So far this is just a test program. But it's defensive. Because Bloomberg had announced that they were developing their own mapping. And doron driver less car technology. That would go directly to compete against Google. Morale okay that couple big giants in the tick rule going at each other here or disrupt urged both. Your turn to disrupt each other will be more if I suppose that's the kind of stuff to be talking about in the upcoming conference absolutely right and you know another one is that. A lot of this technology becoming more and more mainstream cat and here is the ultimate proof point. In technology becoming more and more minister doctor Herbert Warren Buffett saying he would never invest in technology because it never invest in something he didn't understand. Well ultimately I think it was 2012%. 20112012. He took a position in IBM. But you know that was a real safe that now IBM you know it's it's an as the old saying goes nobody ever gets fired for hiring IBM. Well he put eleven billion dollars and I BM. But most recently. Not keep personally but his company Berkshire. But a billion dollar position in Apple's new yes. And again you look at that and you say first of all a billion dollars on 129 billion dollar stock portfolio is a drop in the in the bucket right it's less than 1%. But it is a reflection actually not only of Buffett. Are being interest in technology but him leaving their loosening the reins and allowing his successors has potential successors. To go one direction that at least a few years ago he said he was uncomfortable going. And so you know at. It really tells you how much technology is moving into the mainstream if you know 87 year old Warren Buffett can get more and more comfortable putting serious money into it. Well you know their back up a little bit Paula and say is he getting into because he's finally understanding it or is he getting into because he realizes. He's missing out I think it's a little bit of both but I I think hissed in his defense to a great degree to. Technology is becoming more and more on certain opportunities in technology becoming more and more consistently this model. Don't Africa was model list has model is that what everybody's testing have what's called a durable economic moat in other words. It has to have a competitive advantage that's hard for other people to take advantage of while you look at apple you look at IBM you'd say yeah both of them are pretty good at that they have their predictable cash flows yeah I'd say that's true with a and most importantly they have to be a low valuation other words there Ron sales. That's always been a part of his investing strategy which is value investing right. And so it's really a combination of both cat. It's the fact that he's moving to stay up with technology could he realizes more imports an important part of our portfolio. But it's also because they are you seeing opportunities. That meet his criteria. Always just reminder listeners about your upcoming conference the future of everything it's coming up Thursday evening June 9 at 6 o'clock. And that we would like you to reserve your place because there are limited seats to this event. Toll free eight DD 89727526. That's 888972. Plan. Ball control information about the upcoming conference exciting stuff we're looking forward to it we'll see next weekend sounds great Tony it's a plan strong financial form. This is tall Parsons president of planned strong investment management. And you're listening to the plan's strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what media take a look at your investments and retirement plan called my office at 80889727526. That's 888972. Plan. Securities and investment advisory services offered through an extra to prevent the opportunity as I think sequestering investment management and filling them essentially rethink this whole business any Russian diplomats of the six -- investment management is located at nine ED Washington street Dedham mass or to go to six and to be reached at 889727526. Securities investment advisory services offered through next financial group ranked number Finneran SIPC -- investment management has not affiliate of Dutch financial group think this radio show is for informational purposes only and is not a solicitation recommendation that any particular investor should purchase or sell any particular security. The information contained herein is obtained from sources believed to be reliable and its accuracy and completeness or not guaranteed meter next financial groupings nor represented to provide started.