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Full Show 7-19-17

Jul 19, 2017|

Full Show 7-19-17 by The Financial Exchange

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This is the financial exchange with Barry Armstrong and chunks of you're exclusive look at business and financial news affecting your day you're sick leave your world. Stay informed and up today about economic and market trends plus get breaking business news and good. And now the financial exchange with Barry Armstrong and chuck soda. Housing. Represents. 18%. Of our economy and like you to think about that for just a moment where the largest. And most advanced society in the world and housing represented 18%. Of our economy I would suggest T. That we're not gonna get a robust economic recovery without it recovery in housing and today this morning at 8:30 eastern time. We got housing starts data and building permits information. That was pretty darn good hi everybody it's very truck with you here on a Wednesday and I you know I I know the numbers need to be better than where they are in terms of permits and concede housing starts. But what we got was an improvement and as an upside surprise. Yeah it was I know we've we've talked last month when we came in with a disappointing number. A few months right. Really last month I mean you've seen a little bit of a decline the last couple but we've kind of been bouncing around here. And you know I know that some people were disappointed in terms of where everything you know was looking there. But from my perspective this is being an overall. A pretty healthy recovery as far as. Where housing starts data has moved over the last five years here in July 2012 to go back five years and I. The annualized pace that we were it was 740000. New homes constructed each year are okay. Today. We haven't been. Down below a million homes constructed in in a year and just when he fourteen and and right now we're on pace overall this year to do right around one point two million. But isn't that still I was looking at a study from Trulia. In US starts for new homes and apartments are still in just 60%. Of their fifty year average and what that tells me is you're back in 2012 we were suffering from a housing hangover right we we built too many houses. Between 2002. And 2007. Depth and we were just you know we had excess inventory we will terrible economy. People are losing their houses. And in 2012 that hang over was still going on. I I agree I don't think what we're never gonna get back up to two million units okay and in a year just as we we don't need that at this point it was all detailing the lack of population wouldn't I think I don't even think you can necessarily need back to one point 61 point seven 'cause the black population we overbuilt or we are doing two million plus. I think you can probably settle in somewhere around one point 41 point five so maybe there's another 20% in terms of upside in terms now which building there could be going on. But I don't think that this this isn't a market where you're going to see that much were neck the population growth just isn't strong enough to support. Be sure hear a lot of complaints struck about pricing. Unity talk soon or else talked to your friends straight talk to Tucker and his buddies who wants to buy like the best place right away doing. They don't want to live somewhere that they view is undesirable in OK they want to live in the city where everything's going on there's always been expensive right. You know. Think about where would you buy a first place. I bought a it was similar to yours who's in New York in it was a co. It was probably in Brooklyn back at a time and Burkle wasn't very solid wasted no Westchester County but it was at a time when. You know you hit it if you were a resident of the building when he converted to a co op the absurd in a yeah here they call Condo. Yeah but if you're a resident of the building you got what's called an insider price up and that was frankly where we did real well and we are it would buy another house after we sold it after a few years and and who want you start you you're right you'd you'd you'd start off with the starter home often times. And then you graduate. To you know you're your permanent residents maybe after five or ten years yeah and you know look it's I get that housing has become much more expensive in the northeast and you don't have to live in the northeast. How much of a contributing factor do you think foreigners. Buying our homes that is. You know in Canada and western Canada in Vancouver. They slapped I think it was a 50% tax on property sales if it was a foreign investor. And look at the numbers coming out of the US the problem is a damn Canadians are buying up a lot of our rules you know we saw stop Canadians at the border. I'd I'm citadel board understood Canadian I mean and our allies and I've been I'm a reformed skinny and now America how. I don't know if you ever truly reforms that would come from up there you know it's kind of like generally don't watch game thrown but it's kind of like you know you've got the north of players Connell wild and nothing good mom. I think that when you look at the the number the amount of sales yeah okay. Last year foreign buyers bought about a 153. Billion dollars of residential property that's according to the national association of real so wouldn't that have made if they didn't allow that. Right if the government says paid no more foreign buyers are foreign buyers unit paid 20% tax on top of that wouldn't that have made your house more affordable yes. But I also don't think that's the right answer necessarily. All all in all what you saw in terms of the amount of property that changed hands on the residential side last year. Was around one point three trillion OK so this represents about twelve maybe 13% of overall buying so it's significant that's enough to change prices that he's a darn right it certainly enough to move around the margins of the biggest buyers of American roasting is still the Chinese Canadians and Chinese you know those Chinese number one Canadians number two of those a year two biggest that you see out there. You know beyond that you certainly do see. Is some some Indian buyers that are starting sickened by a Mexican buyers now. But it really if it's Canada and China that are one and two they dwarf your next closest. Buyers coming from with the off. Warren money here you know what would the ramifications be if you look at a market like Boston. Boston has a lot of foreign buyers in massive amount you know you know who buys a lot of Boston real state there are wealthy parents. Who have kids go into Boston College Boston University a B northeast stern Harvard MIT. And I don't know Emerson. No number I've known a number of instances where parents have come into town their wealthy. In the say. Okay will buyer daughter a condominium for 300000 dollars this is years ago he can't do this anymore now but they would buy a Condo for their daughter in the four years later. They'd they'd be they'd still have the kind of but they can either rented out or sell. Yeah pretty much a lot of a lot of those wealthy families have said look it's it's better for me to do this than to pay 101000 dollars a year and room and board I'd rather and buying a place and having some skin in the game at the end of the day. Then just yeah wasting forty to 60000 dollars and room and board for something that's not gonna happen a lot of them when they they come from these extremely wealthy families. They're kids don't wanna live in a dorm they don't wanna share bet on an I've seen some ridiculous things where you see some of these buildings where families are buying glee million dollar Condo. For their kids and and I can't conceptualize because I look at this I'm like what goes in the do warmed you know we've we've barely over a lot of the water it's our our Middle Eastern right it come from Middle East. And their parents her. Millionaire multi millionaires if not billion UC a lot of Middle Eastern see a lot of Chinese them was that do this you started seeing more American films that are doing it as well just I think they've been Smart up and said look I'm not gonna pay 50000 dollars in the room and board for nothing else I'd much rather you know have my kid living here by can afford it so what did you say foreign buyers are what 12% at 1213%. Deal. Roll market folks you know heard tuck trucks owns a home so he kind of likes the idea that housing prices are high because these are in order but Tucker wants to buy house. In our poll question today is should foreign real estate investors like who's game Canadians should they be required to pay a special tax. When buying real state. In the United States so Patrice Bergeron right he probably owns a home here ray Bork owned a home here. It should they be required to spend it pay a special tax when they buy real estate in the United States our website address is financial exchange show. Dot com should you care to participate financial exchange showed dot com to answer the question I don't think so. Should foreign I don't think you're right they have on being somewhat facetious but there are a lot of people. That do you feel they they don't like foreigners and they specifically don't like foreigners by generals. If you look at what it does to the economy and it it does a couple things a it gets. Potentially very rich in talented people in your country which is a good because then they potentially can invest more in your country. And beat you talk about all of the other jobs that go along with that you noted the money that they're paying in real estate agent feasible that comes back into the tunnel to truck there today tuition all that. You know they buy car those are all significant positives and so I've been a few balance it out is very much a net. Positive what do what the future holds for the state in nearly every time every month goes by. And I look at it and I look at the price of condos or look at the price of those statements if as seems unsustainably high. But then on the other hand you look at the cost of construction you look at the scarcity of construction workers. You look at the booming. Of the eastern Massachusetts economy. And it it makes one think that it can continue. Yeah I think that it and it's not just here it's up in New Hampshire as well. What's interesting is that if you look at the cost of property and a lot of other countries okay particular a lot of other developed countries. Like Canada it's significantly higher compared to the incomes and those countries you know you go when you look at the UK you look at Australia look at a lot of these countries homeownership rates are lower homeownership rates are lower but it's it's very much. You you can make the argument that home prices. If anything might still be underpriced a lot of parts the US and. I'm wondering the same thing I'm wondering if we're not in a new bull market rules state that goes another 510 years. Speaking about state. In our next segment we're going to be joined by Katherine ceiling from the New York Times. Talking about the building boom in Boston casts shadows on historic and public space. Is that a problem now depends on your perspective I suppose that's our next topic from our insurer match dot com studios. As the true agenda still. Varian judge give the latest every day beginning at ten only on the financial exchange radio network. What are the most challenging aspects of -- life planning -- understanding how to protect your assets from the nursing home if you worked hard and have accumulated wealth don't let those assets being drained by an unexpected long nursing home state hi this is Barry Armstrong and I want you to know that the experts at Cushing and Dolan can help you they've got a new -- out this month that will help you create an estate plan that not only protect your assets from the nursing home but it also helps you avoid probate and potentially eliminates the state taxes where do you need a life estate or an irrevocable trust Cushing and Dolan can help educate you on the best course of action with the least amount of worry call their office today at 8668485699. And ask for your free guide don't -- or spouse by a lengthy stay in a nursing -- protect your assets now to ensure a sound retirement 8668485699. That's 8668485699. 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Call today 844 and 99 match or go online and insure a match dot com. Very Armstrong here and I'm joined by vice president G tool from leader bank. We're talking about zero rent. This is exciting because zero rent isn't method for landlords to collect their rent electronically. But there's now find refining. All right so he rented the product we invaded leader may. Comedy can be found it WWW duds you rent dot net and it's essentially. And online payment technology that allows landlords to collect the rent electronic mechanics. So there's several managers first you'd say goodbye to being reliant on the use Postal Service. Goodbye to delays in the mail them no more need for paper check right. Where it's really a laudable Daniels don't even have a checkbook re getting that all the time away and horrible call in and sign up because it's ten and saying you didn't check the it witness really starts to get funnies when you if your landlord and you have. Multiple tenants living in units this grad students the university. Well right now they're all writing multiple checks and sending them in and Perot in order source become confusing pain in the neck. So would you Reynolds who has who actually deputy each tenant can individually matches in 101 payment for that unit to landlord. And then of course there are reports in notification to all great stuff. But going back to your question about Condo association's a lot of Condo associations have been using you aren't as well. Because the Condo. Payments that kind of you sure do every month at the same. So they've been signing up and there's a version of the rate for Condo. I'll be darned well sounds like something that you need to learn more about folks visit. Zebra dot net to learn more that's the website address or call them at 8776917900. Toll free 87769178900. Why collect your rent or your Condo fees with paper checks get with the modern age go to Z rent dot net or call them toll free 8776917900. Security suffered through securities America income member finreg SIPC an advisory services arbiters securities America advisors think Gary Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Strong. So bringing you the best in business and financial news every day this is the financial exchange radio network. Peter bank has just launched him he savings account providing free online banking. We paid one point 15%. Annual percentage yield. You can sign up online right now it leader bank dot com no minimum balances required. But this product is only available. Through their web site so log on right now for more information. At leader bank dot com we're joined now by Katherine Seale from the New York Times I Katherine Oreo. Glad to have you on how much construction. Is going on in the city of Boston today how commercial real estate construction. Well at that. There aren't that he held a little bit at the moment. There is no final point two. Billion dollars. That would be a billion dollars. And with 100. And they also say that this is the biggest boom in the city in Pryor hit nearly 400 years. They're saying yeah industrial revolution. In and out ripping the period in two and seventy. When they handcuffed Allen who land. Right right. What laws were passed in the 1990s. To prevent skyscrapers from being constructed in Boston wasn't that long ago 25 years ago in the early ninety's. The city in the state decided they wanted to put the kibosh on a lot of construction that you referenced from the seventies and eighties. Well I mean they didn't really good then we'll option than. They lit bit in a certain victory them down. They limit. The amount of up quite a certain building. Because. They didn't want that. The ball on the public. The Boston public garden or the comment. But. All in all have landed a left wing years. Two. That created good. Well. I have gone. By animals and as can be up and been. And then. My arm but mayoral record. Right but mayor Walsh Katherine is now trying to change these laws why why is this is specifically there's one project he's been tested in. But why is Matt Walsh he's trying to change these laws. Because there's one particular. I you'll Howard. There want to. But building. Live yet it was that I would be back and I building. After the Hancock. We bought them. And the rule them. They want them didn't want this building is. There's any old. That I know that building when and all the Golan right. And the city would get a 153. Million dollars. But that they. Plus they get much increased tax revenue right. They would get you know a lot obviously created and yeah did you vote at the end they will get millions. Impact revenue but here's the real selling point. That money and many here. Already old. Area neighborhood association. Around around the city. And areas. In that group and heart that they will be the beneficiary. Of that money. So and then Donald. Some of these group mind normally say oh no you know that terrible thing that aren't very. Eric I don't know what we're gonna benefit and the are going to benefit. So it's been a very Smart strategy on their part. How strong is the opposition to this as I read your article they're number of people opposed to the construction of this project. Interestingly I think because of that attitude in the air and except the only guy who ended up. One neat person. Emerged in the eleventh hour. Bill Nelson a secretary of state moon also Sherlund. Of the day at the local mention. We came up at the last minute ad age legislative hearing a week ago and said. Hold your report. It says don't like the way that we've done. And eaten it all four. Building in Boston which says you know being. 20200. Years the. Right right. Well very good Catherine thank you very much for a time we appreciate it oh yeah Katherine Sealy. From the New York Times talking just about the story and you know I'd I've. Read the pros and cons of this and and and you you know our little different on this chart that I. I say build baby boot build in it's like the old drill baby drill I wanna build. Boston is on the verge. Of becoming another city like. New York in San Francisco and they're a lot of people that are posted that I understand that. But it makes us a world class city with some of these construction projects that are on tap. It's that you appoint other places you can to help them McCord. Like the entire other part of Boston that is nowhere near the common and but why do you need to develop this one but for people wanna live that's where people and work fine you know what they do worry about what he cut a hundred feet off the top that would what I worry about your feet off the top. It would when I worry about on this is. But I don't care about the hundred feet in the shadows on the comedy careless. Let's if you don't live in the city what I care about is transportation had to get these people in and out of this. You know you he tried driving in to Boston an 8 o'clock in the morning on a weekday morning good. And he's just the ER if you goodness if you gonna do this type of construction project. You have to simultaneously. In May major and dramatic improvements to your public transportation. I'd in my opinion I just think you have point of places that you can continue to develop either in Boston or in the surrounding areas and with that. You know again if you're building by the common historically there been rules that you've had a play about. I don't understand why we should change and just because someone wants to do something different money talks. Hundred again it's a hundred that I know but that's kind of how we've gotten like this whole situation in the first place lakers from doing things that we're not like that's. When you think about the very crux of the financial crisis we got there because we did things that we said well will be will do for the month now. That's how I feel like the whole big part of how we got you see why I like the idea of doing this though is can it it makes space available. In Boston new one of the things holding Boston back right now is in a company like Amazon wants to hire 900 people. Yeah they may have difficulty finding a place where we put these people why do you have to make it as tall as it is. Why do you need a difficult market B six and developers in terms of financing it I'm sure has to do with. The the bill doesn't it surprise I'm sure these. It's going to be more profitable if it's bigger there's no doubt about that get more tax revenue more jobs are more force I I I understand all that but you have to understand if you live in the city there's very few areas that you can deal where you have actual green space and so to take one of the areas that does have a right now. And all of a sudden put that at risks and I think that's pretty significant mention of us Central Park which is completely surrounded by skyscrapers. No I understand day and night in I don't live in the city but I do like the idea I what I would hate to see. Is that Boston falls behind and in you know doesn't keep up with the trends but. I want Boston to continue to grow but this is a project on the periphery like again there's nine point two billion dollars in other construction. This doesn't make you bent up next we'll have trivia for you related to the old band queen. 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With the market continuing to be highly volatile I'm sure a lot of you are refocusing on the types of investments that you're making hi this is Barry Armstrong and I'd like to talk to you about preferred stocks as an investment tool there are two types of equity securities common stock and preferred stock but Pete each have different characteristics preferred stocks for five investors with a share of the company's ownership but the air typically purchased when they focus on income this means that the stock's value can fluctuate based on the movement of interest rates rather than the movement within the stock market called now 803934001. To get my free guide understanding the basics about preferred stocks that's 803934001. Or you can download the guide right now at financial exchange show dot com. Our friends at the insure a match agency can prepare personalized plan that gets you the best coverage of the best price call insure a match at 84499. Match let's before for 99 match many of our listeners don't know home and one or two cars that that describes you you're the perfect candidate for a free consultation to make sure your property and family are safe and properly covered walls of the get all the discounts preferred customers like you can qualify for call insure a match to compare multiple rates in carriers and 844 and 99 match let's 8449. B nine match insure a match works with the leading carriers in the industry -- -- Plymouth rock and more. Their license for all types of insurance and continued time stress the money with just one phone call and one relationship. Called today 844 of 99 match or go online and ensure a match dot com it's not too late to get a great grade and whole mortgage leader bank specializes in a wide variety of purchase and refinance loans that some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means of faster closing call lead 776917900. That's 8776917900. Or visit leader banks dot com member FDIC equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead. Time now for. Wall Street watch a look at the market's performance so far today it until Berrian chug right here on the financial exchange radio network. Joining us now for Wall Street watched Mike Armstrong is here to make sense of what's going on in the markets. Mike let's talk first about some housing start data what do we see this morning. Yeah more checks so how are actually beat expectations they came and at one point 215 million purses of one point 16 expected that's helping boost things and generally earnings reports have been pretty good. Except if you. Few here and there. Looking at Johnson did coming out of Morgan Stanley they reported earnings this morning. Their shares are up 3% what kind of good news they get. Did it's they'd be gone earnings they had 87 cents a share which is eleven cents above consensus estimate that beat on revenue and also like a lot of the other bank they saw it you know decrease in trading revenue but it wasn't quite as bad as JPMorgan bank America these back to really got hurt on that they're great they're dividend and added. Five billion dollars that share repurchase programs that stock is up on the news. On the other side here we have IBM down almost 4% in early trading. The 21. Straight quarter of revenue decline what's going on. Yeah I got this the company that has been shrinking for years the traditional hardware company it's been trying to adapt the 21 century there in 297 a share which was 23 cents above us that's but like you mentioned revenues fell for the 21 and second quarter profit margins dropped cross every single business units so that's pretty significant. Tomorrow we will have a number of new reports Abbott lab suspect in new York Mellon Capital One. Full slate we'll check in with you then thanks Mike. That is Mike Armstrong. Queen guitarist Brian may turn seventy years old today we will be asking trivia questions about the bandit queen. Which queen song was released in 1976. And became an even bigger hit after it was featured in the 1992. Film queen's world are tech's number is 68680. First listener with the correct answer will win tickets to one of three New Hampshire and we fund destinations. Which queen song. Was released in 1976. And became an even bigger hit. After it was featured in the 1992. Film Wayne's world again the text number here in studio is 68680. Chipotle. There slide their stock price anyway continues to slide today we learned anymore about the chipotle incident in Virginia. We know that chipotle believes that the illness is where do Q some kind of Norwalk virus outbreak. This is a problem they've dealt with before previously. The closed restaurant was expected to reopen yesterday that no confirmation if it did after a quote. Thorough sensation. And so if you are interested in going to that's pulling down in sterling Virginia I do expect that lines are going to be short today. You'll be able to get right in and out with your food do you think it'll affect. They built the one we have they do we have it Tripoli and mile or two away from the office. This does this something that to affect other triple this or that. Has this become a national story are we the only ones they had as anyone would talking about the stalker like I feel like this has been pretty quiet. An affiliate should be no I thought getting him a lot more traction. It it doesn't seem like many people of heard about I don't know why it just seems like the they've been a relatively quiet if you has just like not a shock anymore. That's happening mr. Poland it's kind of one of those things I mean I'm first time in a year and a half ago where they haven't had cells January of 2016. It's not a long time now I know I don't say yeah yeah I mean the stock sold awfully did like they were expecting problems across the country. Did did it impact your. Opinion of the company you know this additional issue. Now I just I donate their time and it works I feel too full after a one of those that actually it's not but not this year not. Not eating at triple a because of this. Nor Obama know it's not at all just not eating here is you care for the Phillies I eat the thing and it's like all of a sudden I just don't have taken that no matter what I'm doing too much food. Cantonment. Area vacant because it was a week and a police still sort of man who does all the grocery shopping online now he's embarrassed about how many troops he buys it out. That's. It would fruit of the women in our office least order remember we still order Tripoli for Winston one death in the way we used. And let live like that we have today with the and now an avid today there is definitely I debt that was the feedback that the women didn't like it really. By gets out there and stuff and I'm just telling you what if if if you know if you would ever wonder why we don't have it here. Who the woman who orders and unfortunately. It completely I'd go for one the day after I won and I'd still feel sluggish. That's true. One in five Americans would default on their bills. Within each month if this happened I hope you're not included in this folks. Yet this is a a study coming out from our country financial shows that 19% of Americans would not be able to pay their bills within one month of losing their jobs in particular those making less than 30000 years 37%. Of those people. Say that they would default on their bills within a month. It's not surprising. You know only one of the basic fundamentals. Of financial planning. Is to have an emergency fund and you know the amount you need in an emergency fund I think. Changes based on your stage of life in your age. I've always told young families again I've my advice to somebody your age chuck would be. You know have six to twelve months in twelve months of whatever your monthly bills are tucked away in a money market account so let's say. To pay your mortgage to make your car payments to student loan payments utility bills in your basic growth trees not vacations and things like that just the basics of your house. If it cost you 5000 dollars a month to pay your household bills and I'm talking all of your household bills. And you should have at least 30000 dollars maybe 60000 dollars and money market account that you just. Treat as an emergency funding you don't spend. That that's ET now if you're older in your collecting Social Security union pension and you've got retirement income I don't know that you need that much in an emergency. I think one of the one of the biggest problems that we run into an and we see this across the board. If people don't necessarily have the biggest problem in terms of incomes spending problem. Because we see this with people above median incomes as well you you talk about this he says okay if you're making less than 30000. I can understand why you have a tough time major ends meet because a lot of parts of the country especially in the northeast that's incredibly difficult. But all of a sudden you get to people were making 708090000. You still find it they have no savings hundred that. Any sit there and say. Well look you're you're average cable bill is coming in that you know 10020 dollars a month the really getting that much out of it you're spending 200 dollars a month on cell phones does every kid need. A Smartphone why did you just get in the football he doesn't need to be the cool kid. And I think that the car your -- had jobs you know it's in those the kinds of things when I was in ninth grade I was fifteen years old my parents and look you go that you get the job on the weekends if you want money as an OK great I went what will work to Stop & Shop knows get paid a 120 bucks a weekend as big money wasn't it Tom but it was enough so that I could do what I wanted to do. And I think that. More than anything else would this tells me. Is that look obviously if if you're someone who was not making a lot of money you're gonna have trouble when you know that you need to be earning more but it also shows the people of both those levels. Just have problems with savings that they spend too much money. Start an emergency fund if you have an hour ago. Have talked to a lot about our friends at the insurer matching agency and they exist to make sure that your assets are protected if you're like many of my listeners who own a home and one or two cars. You are the perfect candidate for free consultation with one of their agents to help you review your insurance needs. Called them today at 84499. Match that the 84499. Match and let them prepare. A personalized plan in the league is the best coverage at darn it the best price. They'll also dig out all the discounts of preferred customers like you can qualify for. Call ensure managed to compare multiple rates for all of the top carriers including our bell. Plymouth rock and more. And 8449. 54 for 99 match insure a match is licensed. All types of insurance and they can save you time stress and money. One phone call one relationship that is all you need. Call today eat for 499 match or go online at in short match dot com. Before you have kids. And I hope you have many but before you have to instruct you need to look into the Costa daycare had no idea. So that's actually I dug it up on her state basis just because of that data will be interest it is okay. Nationally okay about 13 of them we spend about 20% of their household income on child care okay. Let's go tickled him by state look at your right through the New England states I'll start first of your fortunate enough to live in Mississippi the average cost of child care. Is 5000 dollars a year only 400 dollars a month which I can't even fat guy. You go to Massachusetts Massachusetts for an infant has the highest average cost of child care at 161430. Dollars a year pulled. What did you say for one kid. For one kid and this this is an infant you know no Kate 600161430. When Beckett is four years old the Africa lost a child here that we might take them and drop mop someplace this is full time child care I don't know if it's dropping off I don't know if it's on in home and but this is the average no this is center based in and cares this is dropping someone off some. Sixteen grand a year folks okay for four year old in Massachusetts the average cost is 121176. Dollars. Okay let's continue down the list Connecticut is the second most expensive state in New England thirteen 1004 an infant in about 101600. For four year old and continuing down the list we've got Rhode Island about 1210101000. Respectively for infants and four year old New Hampshire number spectrum New Hampshire 11710400. On average. Continuing down the list which states were missing Vermont 9909200. Dollars per year for infants and four year old and main. The news. Mean to them have children. No beard is main 9304. In fits and about 8300 on average for four girls. We will you'll end up going through track and Tucker use the same. At some point you know you'll wanna start a family and you'll have to measure that you say okay 161430. Dollars for daycare practice to take carrier and is it worth your wife going to work. And that's a discussion that my wife and I head back in 1987. Kids raise themselves and we decided it was not worth it. For her to go back to work or do we sheet it we had our first child in thirty years ago and and and she stayed holed. But that's a daunting. Bill 161400. I'm sure it was expensive back in 1987 but I. Doesn't that seem like it distant and I for beating number and when I guess if you if you about it well what if you have. To get what you got from what you had three kids. The proposed happens well it is like as we brought now wants. I think really it beat the hell you're talking about if you have three kids under the age five you talk and fifty. Randy the year nothing and no I'm moving to Mississippi in the campaign fifteen grand for the three of them. Ago. God you if he kept funds that track was just you know what they want you to god that you got to move around you got the got to be Lucy got I have options I just thought that was staggering. Statistics oh it's it's it's ridiculous and you talk about what the always been high. I think the reason I'm told that the reason it's high in Massachusetts. In higher at the masters the highest in the country masters is the highest by state DC is the only area of the country it's higher BC doesn't regulations these and for an infant is 22000 dollars a year. If is nobody DC that we like. But I think Massachusetts because you have that's certain number of caretakers a security of its companies and it certainly is a big regulatory part of it but also we have the highest oh muted talk about wages that it cost the way it was high. The cost of space you know rent and so forth everything is expensive masters regulation rain wages it's all on. Stock talk is next loss I had the answer to our trivia question Erin lash from Morningstar. Joins us to talk about two companies that you may have interest in from our insurer Mac dot com studios trucks. We'll either pass before the end of the year keep it here would Berrian chuck for the latest on the president's agenda and how the markets are reacting this is the financial exchange radio network. Hi this is very Armstrong if you're -- regular listener to my show you know that I've been a long time customer of leader bank I've been doing business with them for years because they're always coming up with great deals and here's another one that you should look into leader has just launched an. 15%. Annual percentage yield you can sign up online right now and leader bank dot com no minimum balance is required that this product is only available through their web site so log on right now for more information at leader bank dot com this rate is effective as of July 18 and may change without notice get free online banking with -- leader bank's new -- savings account that has a one point 15% annual percentage yield and no minimum balance and remember this product is only available on line to logon to leader bank dot com right now that's leader bank dot com leader bank a step ahead. Member FDIC no minimum balance fees may reduce earnings rates subject to change without notice and may change after an account is opened. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets. Our friends at the insurer mention agency can prepare personalized plan that gets you the best coverage of the best price call insure a match at 84499. Match let's pay for for 99 match many of our listeners don't know home and one or two cars that that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered walls of the get all the discounts preferred customers like you can qualify for call insure a match to compare multiple rates and carriers at 844 and 99 match -- 8449. -- nine match insure a match works with the leading carriers in the industry like our bella Plymouth rock and more their relations for all types of insurance and continued time stress the money with just one phone call and one relationship. Called today paid for 499. Match or go online and ensure a match dot com. Hi everybody it's Berrian Todd with you here with a quick tip from the legal exchange showed dot com and Todd I wanted to talk to you about the five year waiting period for Medicaid eligibility. As it applies to the use of the medic and like the state so let's say. I Cree I. Do you buy house away and give it to the kids. Is that five year clock start taking if I've done elect the state yes so if you take your house and many people do this if you take in your house and transferred to the children. And reserve the right to live there you know does that create a five year Medicaid I would absolutely it to and that's the definition of collects it right giving your stuff away. Give it away but you you do reserve that right to live there so that's at least something that you're keeping which which is certainly helpful to you must pay the property taxes and maintain the property. All the property taxes and maintaining is all done by a lifetime and it has you know but I I want to stay on the five year waiting period just for minute because so many people think that it doesn't apply even for the life as the arrangement like you mentioned very. And also too when they make you hear people I can give 141000 dollars a year away because I can do that and not pay any gift taxes that's true. That's an IRS regulation. You'll pay any gift taxes but you will have a five year waiting period. For Medicaid eligibility. So it does apply. To almost all transfer some. Including. A life estate arrangement so yes I thought the folks Cushing and Dolan is making a brand new guide available and it's very helpful for those of you were thinking about giving your house solely using light the state he compares. The advantages and disadvantages. From a life estate to a herbal Coble trust the phone number to receive the guide. Is 8668485699. You can download the guide right now. By going to legal exchange show dot com or call toll free 86684856998668485699. Stay on top of breaking financial news by becoming a member of the carries brigade log on to financial exchange dot com and sign up today. We can and change. What didn't. Queen song bohemian rhapsody made it to the number nine spot on the American music charts upon its initial release in 1976. After the song was featured in the 1992 film Wayne's world it made it to the number two spot on the charts. The winner on this question the first person with the right answer with Adam from your report Adam is taking home. Tickets to Alpine adventures in Lincoln New Hampshire one of the granite State's favorite family fun destinations. It is now time for stock talk and Erin lash from morning star is our guest today here to talk about a couple big consumer staples companies Eric thank you for joining us. Arron let's talk first about Procter & Gamble this is a company. That the stock has been on a nice upswing overall over the last year but they've struggled a little bit the last few months and they're relatively flat for the last couple years now. Where do you see them going and they've made a lot of changes. Yes they have made a lot of changes over the last few years. It slightly more than a hundred grand per come their portfolio leaving them with the course 65. And what we think that supports the permit actually the opportunity. It took every course is on the highest return opportunities culled from a personnel at all the financial perspective still reinvesting behind their plans. Ultra product innovation and marketing import. And supporting that competitive edge without sacrificing significant scale in terms of negotiating leverage with retailers. How much impact today feeling at this point from start up brands that are taking out some of their key legacy. Q legacy brands that they have. You know I think Procter & Gamble is not dissimilar from others in the consumer product realm. And it being challenged by the fact that there. New product has failed to calm Bradley and keep Opel it on a evolving consumer trends and as you point out that complained that. Smaller niche operators have done. Much better cap that and that in terms of being at dial in responding to those consumer trends in a much quicker way and so I would say that. You know there is David. I think that the combination of just that more current trend product innovation combined with the fact that. Social media and e-commerce channel has been able smaller initial operators. Conflict keen and love that. I'm credibility and that recognition that maybe had been more costly and difficult to achieve calm in the patent that is a formidable competitor. On the PNG adding Q compete against. Let's start over now let's talk about another company in this space this one a little bit more snack food oriented but month of these international this is a company here. That the last two years prohibit a little disappointing for shareholders it's pretty much the same place it was at the middle of 2015. Where where's where's there room for this company to grow today. So I think it is a couple opportunities come on at least two girls you know number one you obviously have. Com the fact that their portfolio to go blank and snacking. And back into isn't based within packaged food that has been growing. After then other court kind of destroy our category until we think that's their position not only in the US but in emerging market critic on or about 40% of their sales. On condition them. I can take advantage of Karl. In addition there have been concerns over the past month herself. I'm calling Amazon and went on to purchase whole foods than the the two quick implications of that could have for consumer product companies. Mark the image clean. That deal actually continue to accelerate growth. A consumer product offering in next mind channel around and players like mandalit cooking and can benefit. From growing consumer adoption on a e-commerce. Across the TP keep it. Very good Aaron thank you very much for the time today we appreciate it. It's Erin lash for Morningstar in the two companies that we talked about their Procter & Gamble with the ticker PGM. And mom to these international with ticker and the LZ. If I'm an owner those companies. I worry about margin compression. On both licences is there. The you know you look at Procter & Gamble they went through one heck of flight was any of that razor company and a couple of dollar shave club Ares both of them determine which one night doing that you know I was a long time you're let your dollar (%expletive) club is yet. Which he still on the don't know which one it is. Yeah the package you look up and acted before not until now. Nobody they met. Isn't that a prime example out of nowhere salute somebody came in and you know Gillette enjoyed. I don't know 50% margins in the business may be more you look at what's happened to it's it's it's very similar to what happened to conventional fashion retailers you know. They had these long product cycles of high margins and that's where they made their money. All these new quick turnaround shops it is not they knock warrant out in the Internet knows. No storefront or use this you know the guy started dollar shape crowd clubs started from his living. Market is up Dow's up nineteen points oil's trading at 4659. We're producing the show Tucker. Chuck in Berry from our insurer match back on student. With the market continuing to be highly volatile I'm sure a lot of you are refocusing on the types of investments that you're making hi this is very Armstrong and it's like to talk to you about preferred stocks as an investment tool there are two types of equity securities common stock and preferred stock but they each have different characteristics preferred stocks for five investors with a share of the company's ownership but the air typically purchased with a focus on income this means that the stock's value can fluctuate based on the movement of interest rates rather than the movement within the stock market called now 803934001. To get my free guide understanding the basics about preferred stocks that's 803934001. Or you can download the guide right now at financial exchange show dot com. Dirty suffered through securities America incorporated member finreg SAP C and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. It's not too late to get a great raid on a whole mortgage leader bank specializes in a wide variety of purchases and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making means a faster closing call 8776917900. That's 8776917900. Or visit leader bank dot com. Emirates the SE equal housing lender and the lowest number 449250. Subject to credit approval leader bank a step ahead your dream home is within reach with a Jumbo mortgage loan from leader bank they're jumble loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases and refinances all originations are managed by your bank's local underwriting processing team for additional information call 8776917. To 900 that's 8776917900. Or visit leader bank dot com. Member FDIC's equal housing lender and MLS number 449250. Subject to credit approval leader bank a step ahead you're financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets. Our friends at the insure -- -- agency can prepare personalized plan that gets you the best coverage of the best price call insure a match at 84499. Match that's before for 99 match many of our listeners don't know home and one or two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered will also dig out all the discounts preferred customers like you can qualify for call insure a match to compare multiple rates and carriers and 844 and 99 match let's 8449. B nine match insure a match works with the leading carriers in the industry Laker bella Plymouth rock and more of their license for all types of insurance and continued time stressed the money with just one phone call and one relationship. Called today 844. It's preferred stocks that very few individual consumers and investors buy preferred stocks. A lot of people just don't understand what they are that's why we're having a conversation with regard to preferred stocks. What makes chock what makes a preferred stock preferred an amusing air quotes. One of the biggest things is that. Preferred stock owners 10-Q were rather or required to be paid. Before common stock owners both in the case of any bankruptcy but also in the form of dividends and distributions so would it does. Is it puts you ahead of the common stock holder. In the overall corporate value chain. All right so. If something were to go wrong with that company there gruden go bankrupt I often think about Wells Fargo right if Wells Fargo were gonna go. Out of business preferred stockholders would get heat before common stockholders on any company Freddie fuel preferred shares now. Not that many companies actually issue preferred shares not that many do it's it tends to be typically financial companies that do they typically do it is a way. Of raising cash without deluding common stockholders. But the benefit of this is that the preferred stocks typically pay out anywhere between five in 8% and as I mentioned. That distribution has to be paid before the common stock dividend so once again it gives you a little bit of a leg up in terms of priority to collect income. Would you like to learn more about preferred stocks call my office 800. 3934001. And receive our guide to preferred stock. The phone number 803934001. Or download the guide right now at financial exchange showed dot com. Pull free 803934001. Securities offered to securities America incorporated members Jenrette SIPC and advisory services are for their securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. Whether you're celebrating a milestone were diversifying your portfolio precious metals are Smart meaningful investment one ounce and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and buy your gold locally we just make sense of leader bank a call and learn more call 8776917900. Or visit leader bank dot com not a deposit not FDIC insured and uninsured by any federal government agency god guaranteed by the bank and may go down in value leader back a step ahead. Many of you listening today are probably retired are getting close to retirement age so have you taken time to think about what happens if you -- your spouse get sick and needs nursing home care hi this is very Armstrong with the question what would you do if your spouse didn't have enough money to live on because you were in -- nursing home and depleting your assets like tens of thousands of dollars each month how long would your money last if you share these concerns that I want you to call Cushing and dole and they've got a new guide out this month that can help educate you on how to deal with this problem you might need a life estate or an irrevocable trust which one would work best for you give the experts at -- and -- a call and let them help you create an estate plan that will not only protect your assets from a nursing home but it will also help your family avoid probate and potentially eliminate estate taxes call 8668485699. That's 8668485699. Or download the guide right now on their website legal exchange show dot com. Your dream home is within reach with a Jumbo mortgage loan from leader bank they're Jumbo loan program designed for financing an excess of 500000 dollars offers fixed or variable rates for both purchases and refinance this all originations are managed by leader bank's local underwriting and processing teams for additional cost information call 8776917900. That's 8776917900. Or visit leader bank dot com member FDIC equal housing lender and MLS number 44950. Subject current approval leader bank a step ahead. If you're real estate or property management company Unita banking partner that has all the right tools to keep your operation efficient leader bank is one of the premier banks in the property management and real estate space offering a suite of unique products and cash management services to help you collect rent managed Condo association payments and digitize paper checks leader bank utilizes state of the art technology to offer convenient banking services to its real estate clients such as these CH payments mobile banking remote check scanners and it's innovated to see rent payment platform leader bank has a team of business bankers that are on call to help you and they'll come to your place of business and make it as easy as possible the number to call is 8776917. B 900 that's 8776917. B 900 find out why many of greater Boston's premier property management and real estate companies -- leader bank as they're banking partner call 8776917900. Or email BDO at liter bag dot com for more information member FDIC equal housing lender. This is the financial exchange with Barry Armstrong and show Oksana. You're exclusive look at business and financial news affecting your day you're. Leave your world and stay informed and up today about economic and market trends plus get breaking business news and every day. And now the financial exchange with the very Armstrong and chuck Exxon. One sector of our economy represents 18%. Of gross domestic problems that of course is the housing sector. And we got housing numbers in terms of housing starts and building permits this morning at 830 to a favorable as a consequence the market is. That was a 23 points. Everybody it's very and chuck with you here. Funny Wednesday and nothing of those housing numbers seem to be just kind of inciting the animal instincts took. Yeah good good numbers coming out on on housing here and in particular. You know a nice bounce back on housing starts which had been down. Originally last month down below one point one million now bouncing back up over one point two and eight in an upward revision for last month as well overall. You know I continue to see that housing is pretty consistent right now it's were were right in that one point two million. Annualized pace for new home construction. And I think that's probably a pretty fair place to be right now I think long term economic case that we get to one point 41 point five million new homes per year but. I don't think we have the appetite to get back to one point seven point 81 point nine now without population growth. No and we certainly do not have that million mean wary you know it's not going to be that long before we turn into Japan. With the proceeding population with pop Japan's population shrinking violet half percent a year. Yeah it's I mean we've we've got a ways to go until we get to that not far I mean we're we're we're less than 1% growth that's still ways to go to say that you have a declining population. We need this anyway. Many of you bat this well in many of many of you pass me the question who the heck. Are buying all those multi million dollar condominiums. In the city of Austin right millennium towers and you look at all the the luxurious high rise housing that is being constructed in the city. And I have the answer track figured it out what are you got. Vertex its people work work for Vertex going to be after after today Vertex stock up over 25%. Initially today now up 22%. Little bit of profit taking has gone on since the open most of their employees are in the Boston area wouldn't they it was a it got a huge facility dynasty 200. 14100 employees in Massachusetts yeah this is that they're going to be celebrating down in south that denied. I can tell you. The big thing that they saw yesterday they released results from a study of a triple cocktail of three different drugs that they produce and what Wall Street was looking forward about a two and a half percent improvement. In some long function measures. What they got was a nine point 6% improvements of the stock went through the roof today this is for patients and cystic fibrosis straight answer that's really this is. And they went trick ponies at the risk and the company that they are but there's no one else who had the league does not really that many treatments which is fibrosis I mean it's. It's something hard to watch the tree doesn't. Affect a ton of people and so it's kind of been one these orphan diseases that no one really developed a lot of good treatments work there's no cure for and so this is something that has the ability to have a huge impact. It in a lot of lives especially think about the global perspective the other thing I wonder about it come a drug like this like it's an expensive drug. First of all that but can somebody in Russia. Afford to buy here can somebody in India who stop suffering from cystic well there won't be the same price I mean we know that drugs are priced differently depending on the market that you win two. I just look at it from the perspective of what it does from the potential quality life. Half the people born with cystic fibrosis don't live past age thirty. I did not know. Half the people wars that don't live past age thirty. Is this is it's a blockbuster that this is a actually not actually a blockbuster has a blockbuster would be. A drug that treats the masses right this is a relatively small disease it would be something that order or something just that completely cured it you know if you could come up with it troop cure for which we don't have at this point. That would be that that's kind of the holy Grail out there the still affects about 60000 people worldwide do worry that they might get bought. You know it's a forty billion dollar company how does that mean in terms of size for drug company. That's something it you know somebody looks at it say you're an all buys her Merck you look at that say gee we could bide. And it would be accretive tour earnings there's not that many companies that could buy it. Okay. Pfizer's one of them okay five's about a 200 billion dollar company market you mention is about a 170 Novartis is up there as well. Once you get past that you know you've got a lot of companies kind of in that seventy to ninety billion dollar range. That's expensive acquisition. This when you would not want to pay at least he want those that CEO to remain in Boston knew what those home office jobs to remain in Boston who I do think that a lot of these companies when we see a lot of these Biotech ticket bought the Boston based ones. One of them and that keeping pretty significant. Numbers of people Ian. The Boston area you know. When who was what's the what's the when as the building right off like it was my views Genzyme you know they still have that facility there. Nobody you know what ends up leaving chuck do a lot of those executive positions. Yeah it's true. Henry active members last name you know he was an active guy. In Boston just to see him around notes it's true it's you definitely see some of that but I don't like I like seed Boston companies buying. Companies outside the reason I don't like to see remember July actually used to be a Boston company. They'll let. In LA and and they were active in the community and world saving headquarters right there right there in Boston via net and Gillette Stadium it was still zealous well. This shows summit that Hillary was first year to give our would a new. CN GI field. It out I was like for two years in it was like we do it was literally like maybe it might have been a month that it was like that there is are all the signs are I remember it all the you know it was actually more expensive to deal with than that. Was the TD garden because originally it was going to be Shawmut center very good and then hopefully Shawmut yeah all of a sudden they're sitting there with all these seats that the Shawmut logo on there and they're like. Louisville hoops what are we doing it was a huge hit all the seats installed with the other logo on Lotta people listen. You don't even know who shot that is. But the effort towards him loads of bank that failed they're dated him acquired it. They were gonna that was in a crisis before 2008 which is on the related to the 1980s. Yeah so. It's if it's itching to the CEO. The web. Experience. With CN time for you know do this. Quick story about why you should never eat food on planes. Read the reasons who does not. It was reasonable one way when did serve food on planes again trying to remember the last time like this is busted. I'm gonna meal once or twice on the plane. Dodi. I won't again after reading this you win the what they say. In NIC you know I've I've got a lot of points trot tribal lies they told me you know Toby why the music never eat on the plane. He said personally Huckabee hunger when your plea because your digest it when you're at that altitude. Your digest of system shuts down death continue thing that's real honest to DEC you're not gonna have an appetite is not like you're gonna get them in. 40000 feet be starving Murray yours you're digest of system shuts down so when you eat what happens it just sits there right. And then when you lay and you're digest the system has to work overtime to digest mood that's that's if they have gently. Marie and hangover when you answer Gelman ever you know plain dislike board that's why I'm meetings. You know they if something did it something you don't do it anymore. You've all been warned as to why should not eat dumplings. They coming out the worst direction of the people that bring something that smells awful like the people bring it I got a filet of fish and bring it on the play for for much of Poland weren't. Getting off this plane now or onions and so. Every Wednesday. We interview. Business owners and today is no different we're going to be joined in the next segment by doctor Mike claim that he is the CEO of flex he and you wanted. Prompt us a little bit on this trip what we do and is missing. Yeah pretty much we're going to be talking with with Michael my doctor my claim in a ballots. Flexing and really about their entire business we're talking. About what they do how they've developed some of their treatments that they've really deal with a lot of different muscular skill. Musculoskeletal. Conditions I knew I was gonna butchered that took in particular osteoarthritis so it's something that affects an awful lot of people know mom and I think it'll be pretty interesting to hear what he has. So Tucker I've had a couple people text in its it will I'd like come on and talk about my business how do they they patted you need doctor claimant would liberally to yeah the best week in getting contact with the show for this segment is just go to financial exchange showed dot com click on. Contact us and you'll find the email right there in just shoot me line yet many publicists they got that idea. All right that is next from our insurer match dot com studios. The debate over tax reform and trump care rages on that's very in charge of the latest on how any changes may affect your portfolio for your financial strategy only hear from the financial exchange radio network. Preferred stocks are unique investments that can be an effective part of a financial portfolio but it's important to understand the various types and the various benefits that come with any purchase hi this is Barry Armstrong there are several types of preferred stocks including street preferred and cumulative preferred you can also purchase preferred stocks through exchange traded funds or ETFs if you own preferred stocks or are interested in adding them to your portfolio called now for my free guide understanding the basics of preferred stocks call 803934001. That's 800. 3934001. Call now 800. 3934001. To get my free guide for you can download the guide rate now at financial exchange showed dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services suffer through securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Your financial strategy has to include a thoughtful insurance plan insurance exists to protect your assets. Our friends at the insurer imagine agency can prepare personalized plan that gets you the best coverage of the best price call insure a match at 84499. Match -- 84499. Match many of our listeners don't know home and one or two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered will also dig out all the discounts preferred customers -- you can qualify for call insure a match to compare multiple rates and carriers at 844 and 99 match that's 8449. B nine match insure a match works with the leading carriers in the industry like your bella Plymouth rock and more their license for all types of insurance and continued time stress the money with just one phone call and one relationship. Called today 84499. Match or go online and ensure a match dot com. Markets continue to fluctuate but we John you covered get your daily update on what's hot and what's not from Mike Armstrong every morning at 1030 only on the financial exchange radio network. Every Wednesday at this time we interview a CEO with the owner of the company today is no different we're joined by doctor Mike. Claimants from lecture. We certainly are doctor thank you for joining us today. Pleasure reader thank you reverend doctor can you talk a little bit about. The types of treatments that collection is developing and what you're trying this will probably trying to sell. Yeah we're we're specialty pharmaceutical company were based in Burlington mass just up the road. And we're focused on local therapies for musculoskeletal. Disease beginning with osteoarthritis. Our lead compound is called to read it's a sustained release steroids tickets injected into the me. We filed in NBA with the FDA back in December and we're looking for at a decision data so called the do today. On October 6 of this year assuming we have approval and launch in the product shortly thereafter. Let's talk a little bit about osteoarthritis before we go any further what exactly is how many people does the fact yeah it's also known as degenerative joint diseases most common form of arthritis over thirty million people in the United States haven't. Fifteen million people a year or see their doctor for knee osteoarthritis that's the point that we're perfectly focused on. And from the time you're diagnosed with the two or Fareed is there's a 50% chance you'll get your knee replacement course of your life real. Very common. And it reflects. Pain refer accurate available therapies. And he gets to the point where you can't sweep through the night you're not able to do the activities of daily living that you wanted to do. And in essence you get the point of exhausting your treatment options. And going to your surgeon and saying I really need to have my knee replaced so there's actually a push from the patient. No one wants to have surgery. But when you're an unrelenting pain. And in seriously compromise function people move and that correction. And also just mention that all the yards are very commonly used for this condition a 70% of lost her friend management. For pain management 70% of las reference patients are treated with pain with with Tokyo it. And it turns out that open it don't do it terribly good job we're relieving the pain not a good therapy for chronic non cancer pain like osteoarthritis. And the addictive potential is truly extraordinary. So we we see ourselves as having potential to offer an alternative to the need for writing and help you a prescription the drug that's in development that you're working on right now though. What exactly does it do does it stop the degeneration does it does it stop the pain how does that work so it's a powerful anti inflammatory in underlying the disease stayed in osteoarthritis is inflammation. It turns out that steroids as a class people know them generically as Cortes zone or cortisol. Are injected in over four million patients a year into their knees for osteoarthritis pain. But none of them are formulated to stay in the joint. For a need to degree of time so they're injected they flood out of the join in into the bloodstream. And pain relief which is reasonably good wanes after a few weeks. By convention they're not injected any more often than every three months. And as a result you have this built in an unmet medical need patient goes to dock it to secure an injection engines could paint Leo goes back to their done consistently for next injection. Doc says come back in two months not satisfying so we did is we formulated very commonly injected steroids. In a polymer that's slowly dissolves and release is the drug in the joint. And we have data that demonstrates. More powerful pain release phantom relief and immediate release jury and longer operation. That then you released here right and we have demonstrated. Therapeutic concentrations effective concentrations of drug and going for at least three months after a single objection to your your all the way up to that three months of still being able to provide pain relief exactly right and we're we're very excited about the tenth for this product to make a meaningful difference for literally millions of patients. We're suffering from the house here but it was the market. They when you look at this and you say okay we've got thirty million people suffer from an illness that we might be able to assist yeah. That's gotta have huge market potential yeah we've that's just in the United States to yeah it's we're focused particularly on the United States will lost or product launched in the because that's were regenerate the clinical data. If you and we've publicly guided tour price in the range of 500 dollars per injection. And you can do the massive plywood or penetration of four and a half million patients or inject with stories to each year. When we have research analyst banks that follows the research analysts are seven or eight of them. Marines and their peak. Revenue estimates between 600000001. Point four billion so it's. It is a very large opportunity and that's just domestically here that's just domestically and that's to sneak the 500 dollar treatment how often you need. Well we we weren't expected to be given any more often than every three months we have data that demonstrates. After a single injection meaningful pain relief now to four months. We'll see what the label says it will be working with the FDA on that but certainly not more often and everything on how long's it taken you to get to this. Now we often hear about and you know little long and winding road the drug development as you know when you start illness how much time you know. That we can go all we got we have had a thirty minutes left until. You a funny too when he started exactly. We're actually my co-founder Neil voted in I'd heard in our tenth year election Oca and we've been developing or lead compound since late 2009. We kind of we've we've basically considered it as a as thought it's firm and we realize what the unmet medical need was we said boy if you could. Provide a sustained release your injection them my address that need and we went from that prototyping product and eventually clinical trials so it is. The bottom line is is very little in drug development that happened very quickly what's been the biggest challenge in getting to this point is the development of the actual compound is dealing with the FDA in the regulation and what's what's been difficult there. Yeah it's it's a great question it's a bit. All of the elements have their challenges. The agency the FDA I think goes out of its way to do an extraordinary job. Regulating drug development. Working with them has its challenges part of it is access howl we would probably like to speak with the agency even more. On the we have the opportunity to do we want to be guided by them and we want certainly meet your expectations. So that can be challenging and I would say that fundamentally. Clinical trials are challenging because no one can predict what the outcome of the clinical trial is going to be you always have. At an expectation of what it's going to be and sometimes we're disappointed sometimes era. Here expectations or exceeded so I think that it's the nature of drug development that there is inherent uncertainty in we've been frankly I think I think we're very good. I also think we've been fortunate in terms of having the product and went to David. You mention that right now you're primarily focused on the knee we're getting some text from other listeners wondering if there is a play in the future than the and that being successful in the pro later this year. If you'd be moving into shoulders hips other others and that's a great question and we just recently announced it we will be in clinical trials and hip and shoulder before the end of the year so it's though it's an excellent question com and where we have high hopes with steerage or injected into hips. In ten patients with that the neo way. One and a half million patients a year are injected four and hip and shoulder osteoarthritis. So it's an important unmet medical need there to doctor somewhat interested in learning more about your company. Where they go to do so. While the we have a very helpful website. Www. Question therapeutics. Dot com there's a lot of information there. And they're contacts. For people who wanna pursue things for them beyond what they hire people as well now we are. Very good question we. As we move to launch on this product later this year assuming FDA approval will be higher sales force of 100. We're currently around a 130 people by the end of the year so with that sales force and with some additional. Hires will be in this 260. Person range you privately held now. We were publicly traded we went public in February 2014. With a symbol FL accent. Not that I suggest anybody by the stuff so it. Who we're we're we've been very pleased with having gone public having access the capital available on public markets because. The other challenge to your your questions. It takes a lot in the way of resource. The only outstanding people working really hard and so. But creams without dollars industries so absolutely we'll doctor we appreciate you joining us tonight. Appreciated thanks very much for having me. Doctor Mike claimant he's the CEO of reflection this symbol for the stock is FLX and if you wanna. Talk to us about your business contact our producer his name's Tucker Silva. How do you do that they just go to financial exchange showed dot com it's easy to do we'll be right back in order to be talking about. The mean lobster harvest that's next from our insurer match dot com to. You've got to Barry Armstrong next financial exchange. Shall look financial exchange radio network. 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Continuing to be highly volatile I'm sure a lot of you are refocusing on the types of investments that you're making hi this is very Armstrong and I'd like to talk to you about preferred stocks as an investment tool there are two types of equity securities common stock and preferred stock let Pete each have different characteristics preferred stocks per five investors with a share of the company's ownership but the air typically purchased when they focus on income this means that the stock's value can fluctuate based on the movement of interest rates rather than the movement within the stock market call now 803934001. To get my free guide to understanding the basics about preferred stocks that's 803934001. Or you can download the guide right now at financial exchange show dot com. Securities offered to securities America incorporated member finreg SAP c.s and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Many of you listening today are probably retired are getting close to retirement age so have you taken time to think about what happens if you or your spouse gets sick and needs nursing home care hi this is very Armstrong with a question what would you do if your spouse didn't have enough money to live on because you were in a nursing home and depleting your assets like tens of thousands of dollars each month how long would your money last if you share these concerns that I want you to call Cushing and Dolan we've got a new guide out this month that can help educate you on how to deal with this problem you might needle like the state or an irrevocable trust which one would work best for you give the experts at Cushing and -- a call and let them help you create an estate plan that will not only protect your assets from a nursing home but it will also help your family avoid probate and potentially eliminate estate taxes call 8668485699. That's 8668485699. 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It's not too late to get a great raid on a whole mortgage leader bank specializes in a wide variety of purchases and refinance loans at some of the most competitive rates in New England a dedicated loan officer will work with you every step of the way and their local decision making music faster closing call 8776917900. That's 8776917900. Or visit leader bank dot com. Emirates the SE equal housing lender and the lowest number 449250. Subject to credit approval leader bank a step ahead your dream home is within reach with a Jumbo mortgage loan from leader bank they're jumble loan program designed for financing in excess of 500000 dollars offers fixed or variable rates for both purchases and refinances all originations are managed by your bank's local underwriting processing teams for additional information call 877697900. That's 8776917900. Or visit leader bank dot com member of the NC equal housing lender and -- number 449250. Subject to credit approval leader bank a step ahead. The financial exchanges of live on FaceBook so make sure like your page and watch the guys break down the latest on the markets every day beginning at ten on the financial exchange radio network. Queen guitarist Brian may turn seventy years old today we're asking trivia questions about the band queen. I think which wanna I wanna do here at two questions to choose from through hard. Right Brian may has a Ph.D. In which subject. That's our trivia question first listener with corrective to win tickets to one of three new hip for and we fun destinations. Brian may has a Ph.D. in which subject are tech's number 68681. List with correct answer wins the prize again. It's tough question that some video brilliant or. Have to concern myself with a very important topic and that has to do with lobster lobster. Has become big business big business both domestically and internationally. Yeah I in particular the international growth of lobsters in pretty significant the last. It was seven or eight years especially from China where they were previously. Next to no demand if you go back to 2008 and all of a sudden. It's just exploded in the Chinese market right now it's inched you know the the attribute the growth in China. To the appearance. Of the lobster in the words lobster in China. Means drag. And it is gone to your point chucked in 2010. Just six years seven years ago it was point 3% of all the lobsters that the United States exported via. Now it's 13%. Of what we export big chunk big trucking it in a particular. What you see is that because you have to ship and all the way over there it's very expensive in China to it could be as much a hundred dollars for one and a half pound lobster. In China that is a 131 million pounds of lobster were harvested in 201680%. Of our 131 million pounds came from me. Yeah its main main continues to be really via the dominant player in a lot to face the the they're no conglomerates. In the business up there in in me know if you wanna be a lobster man. And I know you've got that wears those days who can go to log on my god because god please so if you see those lobster fishing boats going out. The guy who has the license. Must be on the boat at all times a father in law Jose laughter and for awhile was a and I kind of went on to. Talked to him about it C going to be on the boat. Both come you know going out coming back into all kinds of regulations in terms of what you can and can't catch can't get any females that bags on the outside suit you just because they're repopulates again throws back if they end up in the traps what are they how they police. With the Vitaly in terms of that in the and check in yet the doctors checking out at sea they do some checks at the dock there is you know a lot of times you'll soon view and a bug grab and you know someone else's trapped you know you might be put one down nearby NC can kind of get a sense of what's going on in the air system itself policed as well. They obviously just like any business they don't check every single option that runs through. But yet though of random spot checks and things like that and you know the bill to give the boat docks and things like that 100000 bucks a year. That's what the law that's at the lobster and make it. Tough job. Schedule in the boat probably make a little more the the 100000 dollars a year and that the average age of lobster and it's fifty years figured it was old. Netflix we talked about Netflix here today and in one of my criticisms of the company lose. They were gonna make money they have a new strategy that I think actually could work for them Tucker you're you're going to see what did you say USC Dunkirk right. Yeah I bomb a ticket just that I. You wanted to go to the theater to see right now that all of our Asia and Aaron rarely go to the fear that. Well Netflix. They're going to be making forty movies. Next year. Yet this is you know something that they're really pushing into now they've they've got a nice train going as far as. There TV content around there what what's now called their serial content here you know show by show content they're producing. With the trying to move into now is these what are these one off distributions where you're making in developing movie products just for Netflix going straight on the Netflix. As opposed to going into theaters and this is one area both simultaneously the old you know not necessarily and so you saw particular. The end of they've rolled out a number of movies in the last few months that. Are going into beaters they go straight to Netflix there have been some that have gone to feeders but in general they've been pushing a lot just words Netflix yeah I mean I we. Seen some of Adam Sandler movies go straight to Netflix now Brad Pitt just came out to movie and Netflix a month ago and will Smith's got a big one with a bonus that was the Brad Smith the Brad Pitt about the military yes swarm machine or he saw that. It wasn't good Oca I was gonna watch that hurts is an hour and a half but will Smith's got another one coming out. On Netflix called rights and I guess that's going to be a big had to do you know or supposedly but yet you seem more more Hollywood go straight enough they'll war with him on rotten tomatoes got 54. That's OK so average it was it was nothing good. But it might my thinking on this would be. Charging a premium for. I think that's the idea is that they're gonna have a blockbuster movie like it Dunkirk greatly worsened who was the one that came out last week it though planet of the apes and it would yeah. Again 95% net Spider-Man that was out the week before I see it in 95% or even in the deep center right. And use that you put her on Netflix in the room and say well you can watch this but it's an extra five bucks. How do that now and I think a lot of people. I think there'd be a number of people who would be interest in that and what what it is going to do is I was talking to someone about this pretty recently someone who's in the film industry and specifically with regards to the decline of the experience of going to movie if you go now this this is just. And I it's expensive. Beat you go when you sit through a bunch of commercials they show you before and now but it is a date tonight outrage and it is but I don't open presents the value that it used. Yeah I agree I mean on Friday when it received Dunkirk I guarantees him twenty minutes of previous write. It's just a waste of time right content are going YouTube watch previews but you said the recent you're going to the theaters you want the experience in the IMAX exactly yeah this is going to be an IMAX big hits yeah you still you can't come close to replicating IMAX. In your own home at this point. You know if you're a regular listener or show you know that I've been a long time customer of leader bank and I've been doing business with them for years because they're always coming up with great deals and here's another one. That you should look into. Leave your bank has just launched what's called an. Providing free online banking with a one point 15%. Annual percentage yield. You can sign up online right now at leader bank dot com there's no minimum balance required. But this product is only available through their web site so log on right now for more information leader bank dot com. This rate is effective as of July 18. And may change without notice get free online banking with leader bank's new east savings account. That has a one point 15%. Annual percentage yield. And no minimum balance and remember. This product is only available online so log on to leader bank dot com right now that's leader bank dot com your bank a step ahead. Member FDIC mil minimum balance. These may reduce earnings rates are subject to change without notice and may change after an account has been opened. You know we talked about Amazon getting into this deal it business and yeah every day we're learning a little bit more and I had Sadia. You know I I'm I'm kind of like the I'm bipolar as it relates to it was a one day I love them the next day hate them. But this I'd like this idea. We'll tell you is the wrong Portland. No underdogs and the government about Jacqueline I've built by apple and you could go either way on it. So you never know we're gonna go. So I think it's of interest here's here's the way outlook united is based on the prices OK there and displaying here to anywhere between eight and ten dollars serving which from my perspective is still to how far in advance you have to order in the learned that so they're saying that they're gonna eventually be able to get down to our delivery see that which I think is cool that is my big thing which right and it's like today. Among work in and there's nothing in the fridge and seeing yourself one here's the other question though he you know with little apron every week. You can't pick everything that's on their menus you have a limited number of selections from I didn't really could pick anything I thought they decide to whatever they want it though they knew I had these talked I know look like they usually give you couple choices there's not a pundit might be like two or three but there's not a ton. This is something where I think what would make it attractive to get the price point down a little bit more okay you're not gonna get dollars that's pretty cheap it's why would you go out. Why would you go out pick something up or you go where I go quite a while rushing Rogge and pound. Is and has dropped you have less and I'll drop fifty bucks like would put would you rather go to chipotle. OK or pay the same amount in have to make your own food. Caller that's that's where I'm Matt is look if didn't have to drive totally merit in Acton get sick very. We'll depends on the side is that it depends are where you put your Portland I mean you know. So from my perspective if you wanna get it so that I'm doing all the work of actually cooking everything. It has to be cheaper than me going up for something fast casual you've got to get that price point. Down into the five to six dollar per serving range never archer paying for the convenience of not having to drive out though yes thank you I mean that's what I would do but I still I feel like the idea that you got into all the prep time an Oprah time if you say if if I'm going to do the prep time on food. I want it to be cheaper than going out. I mean when I make him you know flaming on something might make him like tacos of what was able I think that's now part of the point is like if it's going to be something simple right why why why why am I doing it in house is that going on getting something for the same price started me it is out of oracle out. But it's like her and your your your on your way home you stop violate an area. We have too many military bases in the next segment will be joined by Jeff Daniels from CNBC to talk about the hot potato of closing military bases by any estimate. We have. And access the military bases nobody wants to close them down because they're on their backyard to talk about congressman. We'll talk about that topic would Jeff when we return from our insurer match dot com studios. Film went over trumps economics continues to affect the markets. Get the latest info on the sectors that are winning and those that aren't right here with Marion jock on the financial exchange radio network. -- -- is very Armstrong and if you're regular listener to my show you know that I've been a long time customer of leader bank I've been doing business with them for years because they're always coming up with great deals and here's another one that you should look into leader has just launched in east savings account providing free on -- banking -- one point 15%. Annual percentage yield you can sign up online right now at leader bank dot com no minimum balance is required that this product is only available through their web site so log on right now for more information at leader bank dot com this rate is effective as of July 18 and may change without notice give free online banking with leader bank's new east savings account that has a one point 15% annual percentage yield and no minimum balance and remember this product is only available on line to logon to leader bank dot com right now that's leader bank dot com leader bank a step ahead. 3934001. Call now 800. 3934001. To get my free guide for you can download the guide rate now at financial exchange showed dot com. Our friends are being sure imagine agency can prepare personalized plan that gets you the best coverage at the best price -- insure a match at 84499. Match let's before for 99 match many of our listeners don't know home and one or two cars if that describes you you're the perfect candidate for free consultation to make sure your property and family are safe and properly covered -- of the get all the discounts preferred customers -- you can qualify for call insure a match to compare multiple rates in carriers and 844 and 99 match -- 8449. -- nine match insure a match works with the leading carriers in the industry like our bella Plymouth rock and more their license for all types of insurance and continued time stress the money with just one phone call and one relationship. Call today 844 and 99 match or go online and ensure a match dot com. Security suffered through securities America income members finreg SIPC and advisory services arbiters securities America advisors think carry ons from representative Armstrong advisory group in the securities America companies are unaffiliated. Get the latest on economy from CNBC's senior contributor Larry Kudlow every Friday at 1045. Only here on the financial exchange radio network. During queens early years Brian may attempt to earn a Ph.D. in astrophysics. From London's imperial college. He finished most of his studies by 1974 but abandoned the program is queen began to experience international success however. He went back to imperial college in 2006. And his doctoral thesis was finally approved in the year 27. The winner on this question was Steve from Manchester, New Hampshire Steve Satan taking home tickets to candy a springs adventure park in handy in New Hampshire. One of the granite State's favorite family fun. Destinations. Ari we're joined now by Jeff gain from CNBC talking about military bases idea power. Very good so according to the Pentagon. How many how much excess capacity do we have as a relates to military bases and why do we have such access. Well the Pentagon estimate that a little over 22%. You know overcapacity. Overall. That would be in the department that then. But there are some services. That is the army and air force to have more and basically that same based on the number it's true that we have. This is you know the first than it does give too much capacity to many installations abilities. That we have. So that the big number you know overall it a little over 20%. The navy actually is very low only about members of apathy. But it sounds like the congress is reticent towards closing bases. Yeah isn't that there was an issue that comes up almost every year. Members of congress are worried. I know where these proposals. Because what happens is what they hear happen. Is jobs get cut this or are they sure. You know they don't necessarily. You know have that they too. Get rid of that. There at the proposal though you know floating around in the by eight John McCain and the number the and our servers that committee. That would. The problem a little bit and give congress a lot or stay. On in me you know because there are. It remains to be seen that that you know will happen now. It didn't happen and. What is written what is the president's opinion on this topic. Well look the president the other wiped out. And the Pentagon are pushing for that they believe you can get about two billion dollar annual meeting from another round. They go. But it is important to note that. You know we're talking about what they call Iraq which is base realignment and closures. Is that the realignment sometimes result in more accurate or more. You know members. The payroll being added that in escalation. You know when you consolidate functions. And that happened in the last breath ground that we. In 2005. There were some abilities that didn't have you know people added. While others you know it it cut completely. Right right. So what do you think the odds are we gonna get it some cuts here is I guess continue to be bloated going forward. Well Al voted down. You know an effort to put is back in the running to allow medical background. It remains to be a that this and it could you. I'm Mike my feeling is they wanted hearing from analysts. There's very slim chance that it will you know past although that fact they're looking at it from a different you know. I'm perspective you know not so much from the previous Brack ground you know but changing it up a little bit. Might give people either of them aren't in my house members of the then look at it but politically is the you have been very unpopular and I doubt that. You know it'll get enough votes and then again at the the it still have to go over to them out and there the opera to. Resolve it that very tall order. But don't they need this and ordered to do tax reform I mean they're going to be looking for money next week. They need a lot of pain. This is as one of the things are looking for help you know that they'll just put a perspective. The previous work correctly. Stayed around seven billion dollars annually and OK if you look at the new ground it would be two billion dollar a year yup we're twenty billion dollars. Over ten years though and I'll let up yet but there's a lot of other caught. Yeah that members of congress think it that bad idea is now because the president is talking about adding more older. You know ramping up modernizing the military. So why don't we wait until the Goldberg further along before we looked at. That won the argument again that there are others. One being that the lap around base closure costs more than it was expected it. That is there's a lot of you know credit. You know having that happen. Sure absolutely Jeff thank you very much for your time we appreciate. Kicker Jeff Daniels CNBC base closures I mean. They they got tax reform health care is dead right there they're there to vote to deal looked but it's the donating you get the repeal through right now right so repeals dead. Health Care Reform is dead. We're moving on to tax code would do with technical. They enter a start on that I think next week yet tax reform they are supposed to be you know again they supposedly are they doing things behind the scenes that have been moving Steve minutia nano has been pretty aggressive in trying to lie get things to keep things on the timeline that he wants. But keep in mind. And he can do it piecemeal we're in the budget yet. I understand billion U piecemeal when they and do it looked at the time I see you do all once because otherwise you do not get that kind of political capital back you know you can't. He gets they were gonna do this part now in this part later we know how hard it is to get one piece of legislation and you can't do corporate first Kenya. I know that I know people like two nights I think it's politically at cited various politically it hurts people discuss they don't see it coming right back in their page apparently if you want tax reform to be positive which is what you want in the mid terms. You that you need to do it so that. Everybody you know Whittier Johnny launched popular with your doctor you've seen increasing your paycheck that that's what's gonna help you elect. Dow is up thirty points oil trading at 4690. Per barrel nasdaq's up 37 points. Chuck is not a Tucker Silva and meet Barry Armstrong we sure appreciate your stopping by don't forget to go to our website financial exchange showed dot com. All of this for march for a match that to.