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Full Show 1-4-19

Jan 4, 2019|

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

I. This is the financial exchange with the Barry Armstrong and chunks are now. 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 every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. And my guess what. Jobs trying to get a job that you get a job. I get a job always get the job there's jobs. One that's the message from the Bureau of Labor Statistics. Telling us that the month of December was given jobs where you can have a mean anyone who's who who in this one. Either can't reader is trying to sell you some and let's let's talk first just about the numbers that we actually got before I get too excited and kind of go law you know into. Even the market in the jobs of the market likes the jobs report and it never seems to happen. So let's let's talk about what's going on here talks out of Mike Armstrong and Matt. Last name arias are Issa thank you perhaps always bad with names and so not good at the guy's first name. Erica the market just took me two years you know I've been called mark before. Listen Billy. So it in terms of what we're seeing here in terms of his jobs report 300 and. We also saw the November payrolls revised up by twenty. 1000. In October was revised up by 37000. So. Big revisions upward as well in a good number for the month in of December in terms the headline number. Some underlying stuff is pretty good as well 237000. People who previously were not in the labor force. Came back gives up then you also had 4191000. Overall new entrants into the labor force including those people who previously weren't in the rare where the where these people so I don't understand so here's what's interesting the the big jump actually I was I was looking through the data. It wasn't older folks coming back into the workforce the biggest jump he saw was actually needs twenty to 34. So it suggest probably ought entry level jobs may be temporary for the holidays but that could potentially turn in the longer term jobs. I don't really hear you just just the fact is it happened flaky oh okay like you had that happen other things that standout. Breaking eight trained over the last few months that have been disappointing. Construction saw 38000. Jobs created for the month really good numbers there manufacturing continue to be strong 32000 jobs created. It was a really strong wage growth for the month point 4% for the month 5% annualized rate. In wage growth for the last year on an hourly basis now of 3.2 percent for the year hooch really good numbers that's right work and you wanna Selig right in that. We have three to three and a quarter range. Is warming off the hate people feel like they're getting a raise but it's cool enough that it's not creating significant inflation at this point though. That's something that you know up I'll come back to in just a little bit. Going back to just how bad we all are predicting how many jobs are going to be economists were expecting a 176000. New jobs 312 savages who. Huge huge beat here one interest in notes. The Indian terms of one area that I've been concerned about with lower oil price it's it is is. You know that the number of oil and gas jobs. But those actually were up for the month as well so you saw a good numbers there construction jobs I mentioned recovering after a week November. Retail jobs. Another good month probably obviously due to you know what's going on from seasonal perspective in retail. Let's talk a bit more about the reach emphasis of the year retail added 92000. Jobs yet agree to an addition of nine to. Last year 2017 start two years ago now 2017. They lost 29000 job yet so are we seeing is is indication that we bottomed out in terms of did the retail. And justice pastor Michael is that there's go out on decade I I don't. No I think part of it is by all accounts the consumer spending numbers for the fourth quarter going to be pretty solid just keep we're spending on and retail so. I think it started to figure out if we've kind of reached you know that the trough of the anti mall trend that's been building over the last. A success yes on other story early this morning that the ball vacancy rate action came down a little bit last quarter which is surprising as well won't it you've seen huge spinning out in malls so there's there's there's definitely you know thinning out that's happened there. But looking at some of this other data that's in here as far as some at some of the numbers that stand out to me wanna go back to that wage numbers. Because this is something that's really interest in because for the last decade just about. The question and we've always been asking is where's wage growth winners wage growth winners wage growth. And to no one's really had a good answer for that people said you know in the best thing that I've seen on on Twitter today is you have all the people who have found all of that is the hot teacher 2014 and 2015 saying oh the economy's at full employment you know word full employment does not going to be any more jobs. And then it's four years later you still getting you know prince likeness of 3121000. Jobs for the month. But wage growth has been conspicuously. Absent aside from last year where it started to move up a little bit. And wanna talk a little bit about. Why that could be the case and why we might be seen wage growth now even though. You are seeing some slowing in parts of the economy and in and think this is interesting to look at. So if you look at the last decade. Which is dominated by fed policy of easy money in okay we're gonna lower interest rates is here in the going to quantitative b.s and make it even easier to borrow. What's the incentive for companies go out and innovate in that environment if if all you have to do was bar with 2%. In buyback 5% your outstanding stock and you know maybe come out with a new phone every year. Does not really a whole lot of incentive for you to go and unity because you can make money by doing very little so there's no need to risk to. By comparison. If we take a look at what's happened over the last year. I think we all can agree that it's been much more favorable in the US from attacks perspective. Both on the corporate personal level so OK things are easier when you make money to to hold on to some of that money but as far as actually going out and making money if you were business. With rates coming up especially talk about you know businesses like autos like housing things like that it's tougher to actually go out. Gains run your business right now. I make the case that maybe that's one of the reasons why you're seeing wage growth right now there's more competition for talent because you can't go out in just financially engineered waiter higher stock ports. You gotta go out actually innovate and actually make the case the tougher conditions might actually end up being better for stocks in the long so. I think that's something that bears watching and that's an inch thing you know perspective on it but watch out in the short term. I agree and so hear me right to your time increased labor costs. In and here's where the rubber meets the road is the Fed trying to deal with inflation because all we heard last year and look I was one of the people concerned about inflation. Didn't really pop up last year partly because we've seen lower oil prices. But as you start to see. Wage growth becoming more consistent which we have seen over the last year now. You start to feel that Specter of inflation creeping up a little bit and four. Folks that are Cipro we want to say fifty years and older probably remember the last time we went through inflation back in the seventies. The picture mate and it may be really 55 and older folks 55 and older remember the last big period of inflation that we went through the 1970s. They remember there was a whole lot of fun your bonds got smoked two stocks got smoked. The housing sector didn't do particularly well in the short term. Pretty much the only thing that did well in the seventies school. Those just about the only thing that did well in the seventies didn't do really well 80s90s or early two thousands but this company's did pretty well there. So I think one thing that we do need to be aware. If we're looking at this from the position of being responsible investors. They wage inflation is starting to grow historically that's been a sign that you have further inflation coming in the economy at some point. It's something that I think is closer now than we've seen in the last decade in really something that I think investors just need to keep in the back of their mind because. The Fed has neo kind of guided the going to be data dependent this year and might not hike is much in if you have a fed that's being more cautious about hiking. While you're starting to see wage growth picking up his company's need to compete from poison in key talent more than they previously had to. I think inflation is still something people left B word on a note and come up last year but I think it's something that all investors need to keep in the back of their mind. Yeah. I think this job report and does a pretty. Good job backing up to room howls. His decision making process doesn't seem like 30 while some ball now hall men three weeks ago Ivan was up in arms what are you doing this jobs report says yeah that's right move so. I wonder what I wonder what the guy I've looked at the likelihood of rate hikes for next year now looks like. I was just going to go they're just as I was curious myself to see if we've seen any shifted all. Here here's the the really interest in being so we've got a fed meeting coming up in 26 days on January 30. Yesterday there was actually a 5% chance of a arms or six point 4% chance of a rate cut in January. It's kind of a hut in January. There's now no chance of cutting Jane. So this is taking all that crazy talk off the table let's go out to the end of the year if we go back to yesterday and again I think this is a great comparison to make. Yesterday the probability that rates were exactly where the art today at the end of the year was only 50%. There in fact was north of a 50% chance that you actually saw her north of a 40% chance. You actually saw cuts by the end of the year. 36 point 1% chance there was one cut eleven point 1% chance there were two and 2% chance that you had three cuts by the end of the year yet. Today. We go from 36% chance of one cut by the end of the year down to 25. We go from 11% of two cuts down to 3.5 and for 2% three cuts down to zero. We also go up. 282 point 3% chance of a hike this year now which I still think it's probably a little bit low when it's all said the network that. Always coming from that's the emergency alert system that test randomly now is these are. Is there an emergency here's this task I believe it's a test of guy we think it's test. In any case why don't we take a little break while the emergency alert system goes off. And what we're back in just a little bit we're gonna stop talking about jobs we start talking about delta in white airfares might be going down a little bit heading into. The rest of the year we're back in just a little bit. Mean this there's the charts graphs and numbers all day and just listen to us it's the financial exchange with Barry Armstrong and chokes up up on the financial exchange radio network. As we age long term care or something to make sure you plan for how quickly would you arrest since being depleted if you had to write checks to the tune of 141000. Dollars every month according to Genworth the average customer private room at a nursing home in New England is just under 135000. Dollars per year and an average cost is expected to increase to over 181000. By the year 20/20 eight if you were a loved one are faced with an unexpected nursing homes day when you haven't done your claiming yet before you write that check. Pick the phone and call the experts at Cushing Nolan at 8668485699. Pushing him Dolan has been helping families just like George protect their essence for more than thirty years and they put together a brand new guide for this month called planning for procrastinators. It'll look for you strategies that can help educate you on the steps you need to take to protect your assets and your family. Do not put off this call any longer give your free guide today by calling 8668485699. That's 8668485699. Or download the guide right now from our website legal exchange showed dot com. Dirty suffered histories and are incorporated in SIPC and advisory service is offered procedures America by incorporated Barry Armstrong were presented a strong advisory group the securities America company or an affiliated representatives etc. America do not offer legal or tax advice always. Hi everybody it's Barry Armstrong and I'm joined today by executive vice president from leader bank mr. Jake tool and were talking about this account today it's called the Zuma rewards account and the thing that really caught my eye on this account is it's a savings account but sort of again if you guys are providing. Two point 05%. EPY. On that account how do you do. Yet it's one of our most popular. Retail banking products vary so. It's it checking and savings company Nokia and if you qualify. You get some great reward so for example you're 2.0 5%. EP wise your savings account up 200000 dollars 100000. You get 1% cash back and all of your eases spending your debit card that's good eight at eight here reimbursements if you use in other things yeah. And so do qualify I'm traveling in a Matta town there's not a leader bank branch nearby. I can use that ATM card and be reimbursed the three dollars to order exactly. That instill the benefit of that is that really expands average network you know he's any damage. It doesn't have to be leader main corn if you call fights pretty simple unions to have your direct deposit and the bank at least 12100 a month for you need to use. You use you count at least ten transactions a month incentive for east Dayton itself. It's it's something that customers would do any ways of using right now rightly gets great benefits. And you get two point 05% annual percentage yield on your savings try finding that in another bank leader bank offers it. It's called Zuma rewards account paying two point 05% annual percentage yield on a bounces up to a 100000 dollars. To learn more call leader bank at 8776917900. Or visit them on line leader bank dot com. It's called zoo book rewards account ZEUGMA. 8776917. B 900. Security suffered through securities America ain't members in red SIPC an advisory services arbiters securities America advisors think Gary Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated we have part of the financial exchange in an instant. By texting us at 63566. Start your textbook. Where Barry and become a member of our brand new textbooks tell us what you think 24 sevenths right here on the financial exchange radio network. Matter we successfully off the emergency broadcast test system we are indeed OK that's good to know. So couple last notes on the job of what one thing that I always do point out. Jobs or a lagging indicator. So this is a backward looking report looking at December but also. Companies that have made hiring decisions for December the usually made those in September and October so there there's usually a few month lag so. Do watch the next couple months just to see where things go. Just because we're gonna start getting jobs data this neo based on hiring decisions when things haven't been as rosy. Some very interest to see where January and February turn out. Over the next couple months nothing that I was thinking about this morning on this. You know I'm someone who admittedly has been concerned about a lot of the things that are going on. In the global economy most notably breaks it in the US China negotiations. What this does this jobs report here what it does say to me. Is that the competition for workers is so fierce. That even if you see a slowdown in the US economy. It might be the type of slowdown that doesn't cause a meaningful dip in overall employment just because were coming from such a high baseline. You might be able to say OK maybe unemployment DO rises to 5% but doesn't hit you know the 678% levels that we've seen in previous 2%. Yes I think people kind of forget it the only eight or nine recession is still so fresh that anyone whenever they hear the word recession a sale it's going to be and over again usually that doesn't. You could have a much more mild one and at this suggest that there could be enough demand there that even if that demand slows down by 10%. It's still isn't enough to fully. And as we look at what's going on here discuss things might be bad Disney and have to be catastrophic and also mr. Cha am getting the it's a new year new Jacques a whole different ball game here thought about delta who was not the most optimistic right now they cut their revenue forecast. And sued their shares actually fell eight point 9% yes say the biggest drop they've seen. In almost seven years now what what's the big reason for their downward guidance here. In they're really pointing to. MacCulloch kind of flimsy database were saying you know they didn't see much of an uptick as they were expecting in Q4. Mainly what they're calling is that because of the decline in oil prices. Basically. You know flyers are expecting lower prices. And therefore they're not. You know seeing the typical uptick that they usually syrup in the holiday season. In charges customers average ticket is not really boosting a whole lot. And that ARA it's a struggle for the airlines is they. You know they all basically be prepaid for their fuel you know months and months in advance and don't really see much of the cost decline from these oil swings not right away he said yeah I mean they see it six to twelve months later. Whereas you know Unita consumers it well. You know fuel prices are down 35% you know charged in the same price for tech. Interview looked at many point costs over the air you won't get any trips over the next six months or anything like that yeah I'm going to be going out to Phoenix sometime in the next four months and I was planning on doing over holiday and a pretty much scrapped those plans BK is just nodded 800 dollars like the wolf. Not good for him with five now and now announces that's not quite what you're looking for so yes I've I've generally seen higher prices. I'm curious how much higher they can go just is he is starting to get into those price points where. You know you get in as they like 800 dollars ticket you since they're going. Yeah happen and I mean at this Christmas holiday season good example I kind of wanted to fly at Chicago but we drove because there's yet and we are five and a drive just terror. Any bullets in particular and I honestly on the way out of his fine ticker time outside the implication is the way home delay Holmes is coming home is always. Ways to use only wanna do was get home than when he finally do we don't you realize you know food in the refrigerator half the stuff in your house doesn't work anymore. And committed and has. To be impact the next. That you're not used to that but not that took a while I as the travels carry on bags so I'll take as long as I can get. New set of Japan Carlos don't sit to get his first public hearing the former Nissan executive. Who has been held in a Tokyo jail for almost two months now by the way since November 19. Following restore about that yet November now he is when this story broke. He is finally going to get. Eight peace a chance to make his case in public. Next Tuesday actually so we still a few more days to wait but after two months in jail he's gonna finally gets beat Pope Oakley yeah he well although this. Process of you know you're getting this this public hearing apparently is not. It's knocking it it's usually not that indicative or helpful for defendants they basically have like a few minutes in front of the judge and the judge has to just say. Hey this what you being charged for in public that's pretty much yet and digestion and they just have a two sentence statement and that's could be pretty much the end of us. This is such a crazy process going on here and yeah Japanese laws different from the US line. I get that but to have a CEO of such a major company behind bars for this long. Without really any public charges is just nuts. Start a little bit about a pilot program that GM and food delivery service door dash are testing out. Gord ash if you're not familiar with them they are an app that allows. You to order delivery from restaurants right from your phone and a lot of cases for restaurants that might now have their own delivery staff. But instead door dash drivers in the delivering the food. What they're doing years they're partnering with GM. For program that's gonna start in March. To try to use GM's crews automation. Unit. To deliver food without. Drivers yeah we've seen this from a number of different companies having Ford missed testing of a Domino's earlier this year. Hoover is you know testing this out all over the place it the more and more stories we hear about this the more. Optimistic optimistic I get that we're going to cede this technology. Obviously the big bigs being that I see here is when do. Trucks get autonomous vehicles no wind as the shipping industry start using us. Yeah and in pretty much. You know you get different estimates out there depending on the type trial we're talking about is obviously the long haul trucking. Look you're talking met significant hours insignificant labor expenses. And also in theory it should be one of the easier areas to now because there is hardly turns its highways to relatively straightforward. But then when you start getting into. Last mile delivery from UPS in the Postal Service and things like that it's more complicated because of new traffic in one way streets in snow and rain and sleet and hail and everything that normally go through so. There's there's bigger questions I think depending on. The type of neo. Actual transport that you're talking about there. But I do find it interesting that. It seems like we're seeing more and more of these types of partnership cropping up the F in recent months there was one of what's mutually beneficial they gets test out it is technology. And the company that's delivering food or the dry cleaning or whatever might be gets it you know pretty cheap delivery solution that would otherwise be completely. Untenable and to invest in the technology have we seen any updates. And Google's program out in in Arizona about their tests they're doing now but I feel it when they do users can blow water. Good quick break here that we got Wall Street Watson also talking rockets because why not. Like there's something. Always on Twitter. Show breaking business news is always burst right here on the financial exchange radio network. As we age long term care or something to make sure you plan for how quickly would you arrest since being depleted if you had to write checks to the tune of 141000. Dollars every month according to Genworth the average customer private room at a nursing home in New England is just under 135000. Dollars per year and an average cost is expected to increase to over 181000. By the year 20/20 eight if you were a loved one are faced with an unexpected nursing home state when you haven't done your claiming yet before you write that check. Pick up the phone and called experts attrition Nolan at 8668485699. Pushing him Dolan has been helping families just like George protect their assets for more than thirty years and they've put together a brand new guide for this month called claiming for procrastinators. It'll look for you strategies that can help educate you on the steps you need to take to protect your assets and your family. Do not put off this call any longer give your free guide today by calling 866848569. Time that's 8668485699. Or download the guide right now from our website legal exchange showed dot com. 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Or zero rent dot net. 2018 sought a market reached new highs but they were short lived in the year ended with a thud as far as investors are concerned record growth in the stock market may be a fleeting thought as we head into Tony nineteenth so it's incumbent upon you to review your portfolio and your investment strategy hi this is very Armstrong and I can help I've got a brand new guide out this month that will review the ups and downs of the past year while providing you with information and assistance that you'll need as you strive to maintain your assets and see them grow this year's economic forecast is cloudy at best so called right now you can get your free copy of my new guide at 803934001. That's 803934001. Or download it right now at Armstrong advisory dot com. Securities offered to securities America incorporated members and SIPC and advisory services offered to securities America advisors incorporated Barry Armstrong represented a strong advisory group the securities America companies are unaffiliated representatives of securities America do not offer legal or tax advice always seek the advice of professionals familiar with the laws in your state. If you're real estate property management company you need to banking partner that has all the right tools to keep your operation efficient leader bank is one of -- 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 in digitize paper checks hi this is chuck is not a we'd bank utilizing state of the art technology to offer convenient banking services to which real estate clients such as a CH payments mobile banking promote check scanners in its innovative -- rent payment platform leader bank has a team of business bankers that are on -- help you know come to your place of business to make it as easy as possible number to call your interest did is 8776917900. That's 8776917900. Find out why many of greater Boston's premier property management and real estate companies choose leader bank is they're banking partner call 8776917900. Or email -- BO what -- leader bank dot com for more information member FDIC equal housing one. And medieval times sharp day was often the difference between victory and defeat. For skiers and riders at Killington. The end point of pride and admiration. No matter your battlefield the more you prepare for more triumphant. Here's to living more life on the edge save up to 40% on lift tickets when you purchase an advance at Killington dot com. Tony team was a rocky year for stocks including nineteen be the same better worse the Armstrong advisory group has a new guide of this month called 2019 a look ahead in if you learn about what may in the market so turbulent and whether or not it can stay there to your free copy by calling 803934001. Or downloaded right now Armstrong advisory dot com securities are pretty securities America incorporated member of -- SAP C and advisory services are printers securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Time now for Wall Street watch a look at the market's performance so far today I don't Berrian jug right here on the financial exchange radio network. Time now for Wall Street watch brought to you by leader bank if. You were in need of a purchased or refinance loan with the bank has some of the most competitive rates in new England and a dedicated loan officer will work with the every step of the way. And their local decision making means faster closing. Call right now for more information 8776917900. Or visit them online. At leader bank dot com member FDIC Mike let's talk first about Intel what's going out big chipmaker. Asked they're moving up today back to America Merrill Lynch to raise their there at the upgraded to a bias. These are specifically looking act. Cloud computing a guy a and then the five G. Potentially improving their data center so stock is up. Was a little bit over four 5% currently about four and three quarters as we speak Netflix about five point 6% what's the good news on that front again and upgrade Goldman Sachs added them to their conviction buy list. Of telling them when the best risk reward propositions and Internet sector right now. Is our instinct take our Goldman Sachs stocks clearly moving up over 5% this morning the market as a whole pretty much wiping out the losses that showed yesterday I was down 660 points yesterday currently. It's moving all over the place mr. Powell speaking whenever he speaks the markets. Ball one they pay attention to the start moving all over the place at Dow is up right now 575. Points making most of those losses from yesterday we agenda yelled speaking today to we Julia haven't seen her at all. Interestingly the the Chiron from was as Bloomberg or on CNBC. Looks like CNBC. The the Kyra their palaces and ISM survey data is worth keeping an eye and that was the eyes and report that we got yesterday. That did show a significant decline in new orders. And that was something that did have mine intended just kind of float around per couple little bit there. Is that something that bears watching that is Wall Street watch presented by liter bank. Caldwell offered great raid on a purchaser refinance loan at 8776917900. Or visit the monoline that we are bank dot com member FDIC. So SpaceX one of you on mosques other ventures beyond just Tesla now pulled into new funding last week. They did and dad valued the company over thirty billion dollars they brought in 273 million sold 273 million dollars worth of shares they've got a little bit more to sell in addition. And huge valuation days so you've got cougar that's bigger than them. And who else is really beating them in the private sector this not a whole lot. No in the US Hoover's the only one not internationally there's a company based out of China called tower child. Which a Chinese news in content platform they're valued about 75 billion in the big rival in China DD. Is valid 56 billion but. The out SpaceX is the tech company. I don't think it is ever necessarily in their best interest to go public just because of the nature of their business and the risks that are associated with that. I almost wonder if they're too. Risky for a Hubble for our publicly traded company. Well why do you say I mean they're competing very particularly with you know Lockheed Boeing and granted those companies also have different business you know business sectors that they operate in but. In and other publicly traded companies that they are able to operate pretty successfully in the public domain. If you launch a rocket and it blows up. It's just not good for your stock price share ideas it's just that the the risks and just from a when we when we go to the biggest risks to stocks that there's really to whom went when it's also and on number one is that you're gonna have an earnings miss I don't know if you know SpaceX necessarily has a bigger risk there than anyone else. But the second big risk is that you have some kind of crisis in public confidence for better for worse the just cause they sell off in your stock because people for whatever reason lose confidence in. When you have a rocket blow up which still statistically happens about one every twenty rocket launches rockets blow up just because they're really complicated. I just don't know if that's. What you want you know publicly traded I just wonder public markets are the best place for that company I think they can do great as a private company and I think that's why they're still private. But I just don't know if you want that risk associated with the publicly traded company with investors that are going to be more flighty than ones that stick with with private one. Ones yeah I mean I'd I'd agree with you on just I'm curious in your opinion not my bigger concerns do you want to. Ilan mosque being CEO of a company like this it's one thing to have and CEO of Tesla. Decade. A car company car manufacturer to have in the CEO of eighty. You know defense company effectively and not defense to come at you lied to consent for the contract a lot of him. The military nations NASA. It just seems like he doesn't have them. Seriousness that I've been looking. For that CEO it's it's a question to a certain extent but I don't think you can really question his execution at SpaceX in I'd expect I think is Ickes accused Sheen at. Tesla is absolutely you know up for question and even its SpaceX they've had delays and things like that. Which is another reason why maybe it's not the best fit for a publicly traded company. They've they they're doing some really really cool stuff especially. You know in terms their ability to recover rockets and re launch and then things like that that there's some pretty good stuff that's going on there and so. What are the victories two years ago they sued for the right tibia compete for military contracts today and they won that lawsuit and that's really. Turn around their company it it certainly has it has. Let's talk about this article from the New York Times headline on it is what should you do about a falling stock market the answer that they pose is nothing. And it's. I think to a certain extent for a lot of investors that's true but I think there's here's a question that most investors have to ask prior to answering that question first is. They've what went windy need access to this money I think liquidity and and when you need that money is a big piece of it. Because yep you're retiring 25 years you probably shouldn't be touching your portfolio right now. But if you're retiring in five. You might not be the time to go all cash but may be especially with a couple positive days in recent weeks. You say hey maybe a trim off one or 2% just to start getting ready for some of those cash needs here and there. Yeah I mean I I agree with the theme this article which is oh in the market's fallen apart don't don't do anything to your portfolio. I always caveat that answer with as long as your portfolio was allocated properly going into the cry yes yes yeah I if you are semi two years old and your entire portfolio in the stock market then yeah maybe need to make some changes but you should have been making those changes six months. It in the comparison that I always like to me is to housing because back in 2009. If you didn't have to sell your house did anyone sit there back and you know the fault 2009 and say. She you know went out of this man effort Mel's word as my house is down 20% I'd really like the seller right now they. I don't think anyone in America said that you know no one was sadness and GMAC 300000 dollar home is now worth 250 let me go sell. But I see a lot of people who say gee my 400000 dollar portfolios 320 now. I need to get out before this gets worse you still own the same things that you did before the only thing that's changed is investors' perception of what their worth today. Egg I have always wondered why investors. Want to push the sell button when it looks bad on stocks but not on housing in. I haven't quite been able to figure it out because I think part of it is there's a bigger distance in terms of understanding what you'll. When you own a house Seiji is my house is where Ireland. When you own stock at that a lot of people look at it just is numbers on the board. And that's that might be having talked to people and if you asked them you know news if you get into a person's finances and say you know what are you worth. People almost always leave out the value there. There was never include that in you don't mind network because they don't see is that they say you know it is my home and has nothing to do with my net worth. Where's your investment that's clearly you know the York the value that you have to live off for the rest elect nobody ever looks their homes usually people don't look at their home and say. Now well you know I've got this 3000 dollar house that's eventually might be used to fund retirement nobody ever does. Well it in and the thing that I always come back to a stocks is. If you know what you won't this is this is a really key part of kind of the first part of me of deciding that you want to own stocks if you know what you won't so let's say. As an example let's say that you own apple which is had a absolutely terrific week and absolutely horrific last three months. You own a portion of that company which means that you're entitled to some of the cash flow from that company going forward. So the course that I always ask people. Is five or ten years down the road do you think Apple's going to be making more or less money than they are today. And it's a better question then do you think it's in the stock's gonna be worth more. Because people can realistically say gee you know they might not sell as many phones today but the long what are people gonna stop buying iphones forever chair. Now or is is apple services revenue given not grow it 30% a year anymore. Well of course like it's gonna continue to. In donors then my question is part of this reason that people view the their portfolios that way because. Less people on individual socks that. Is it gets people look at it and say oh well I just have this fidelity growth fund I don't know what that is I don't know what to make of that but it's down 20% so I don't get items sell. I think that's of the big piece of it is it's it's become so we've become so distanced from what we own both in terms of the names and actually understanding what's underneath. When we hear fidelity growth fund you might just say OG that's a fund that's supposed to grow and it's not growing need to sell. Not realizing gee that owns Google that old you know. It in I think it's really important to understand look when you own stocks. The two things that are gonna make it matter in the long run how much money the company makes so a do you think the company's gonna make more money in the long run and why do you think that in being. How much are people willing to pay for the money it's making a cup he's grown quickly people pay more for because they think it's gonna be worth more in the future if things are looking more uncertain. Values are gonna go down but that doesn't mean the company is actually going to make less money in the futures are just some. The little food for thought let's take a break now and when we come back we're gonna have an interview with Meredith collider from the Hechinger report. About beauty school debt and how it ends up trapping a number of people who were going that's coming up right after this spree. Stunts sits in stunt to you know. Oh your portfolio keeps the financial exchange with Barry Armstrong and chuck signed off on the financial exchange radio network. The calendar has turned in a New Year's here after the way the market ended in 2018 we may not want to look back but in addition to reviewing what was it's also time to look ahead hi this is bear strong and I'd like to ask you to also reflect on your financial well being and your investment strategy as we head into 2019 the markets are still volatile many believe the economy is slowing and were on the brink of a recession trade with China continues to be an issue so what does 2019 hold for us Everett a brand new guy they'll help you look back on the roller coaster year while providing you with guidance to keep your portfolio strong and growing it's called the 2018 your review and between nineteen forecast and you can get your free copy by calling 803934001. That's 803934001. Or download it right now at Armstrong advisory dot com. He suffered histories and are incorporated in as the BC and advisory services offered procedures or to buy corporate barriers are represented a strong advisory group security market opens an affiliate opportunity to secure is America to go to the legal tax advice always acutely so professionally with the laws in your state. As we age long term care or something to make sure you plan for how quickly would you arrest since being depleted if you had to write checks to the tune of 141000. Dollars every month recording the Genworth the average customer private room at a nursing home in New England is just under 135000. Dollars per year and an average cost is expected to increase to over 181000. By the year 20/20 eight if you were a loved one are faced with an unexpected nursing homes today when you haven't done your claiming yet before you write that check. Pick up the phone call the experts at Cushing Dolan at 86684. Raped by 699. Cushing Dolan has been helping families just like George protect their assets for more than thirty years and they've put together a brand new guide for this month called claiming for procrastinators. It'll look for you strategies that can help educate you on the steps you need to take to protect your assets and your family. Do not put off this call any longer give your free guide today by calling 8668485699. This 8668485699. Or download the guide right now from our website legal exchange showed dot com or. All trying to think outside the box when it comes to giving gifts for special occasions so this year I'd encourage you to call leader bank you can visit all leader bank locations from Arlington to the seaport in Boston and they've got one ounce. And 110 ounce silver and gold bullion coins that all their locations and other precious metals are available upon request these types of purchases can be as Smart investment in addition to being a great gift for someone you love co leader bank today at 8776917900. And learn more about its precious metal collection by your coins in the branch and get them gift wrapped right then and there get a head start on your holiday shopping call right now 8776917900. That's 8776917900. Or visit them online a leader bank dot com for more information. Not a deposit not FDIC insured uninsured by any federal government agency god guaranteed by the bank and may go down in value leader back a step ahead. Hi this is Barry Armstrong and I've been doing business with leader bank for many years it's not too late to get a great rate on home mortgage meter bank specializes in a wide variety of purchase 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 we're bank is the number one purchase wonder among banks in the state they have sixty loan officers throughout Massachusetts Connecticut and Florida who were ready to help you find the best solution for your mortgage needs at some of the best rates around call 8776917900. That's 8776917900. And get your great rate on home mortgage call now and they'll mail you a free residential mortgage survival guide detailing the home buying process from pre approval to the closing 8776917900. Is the number to call or visit them online at leader bank. Dot com member FDIC equal housing lender MLS number 449250. Subject to credit approval leader bank a step ahead. It's our daily poll question had financial exchange showed does John. Vote your conscience there aren't just vote go to financial exchange oh god come and test away. We're joined now by Meredith a lot of and injure porch and she got an article in New York Times. 21000. Dollar college college school debt and nine dollars and Howard jobs so. America got a cousin that works in it in this industry and I know that she did she did take out loans for school and you end up getting. Undergrad education that and really fit this and then went back to school to do this how prevalent. Are these for profit cosmetology schools and other required pretty much everywhere in the country. I think. Yes there about that at. People who go to. Well each year. Senate rules are for it. Percent while and you do have. You'd get a complete a certain number of hours. In order to get your license and every day a couple of and passionate and said but there and but yet you must complete. A certain number of hours in order to elect. And I mean I get ray I don't really wanna go into a barbershop and have somebody in my head is never cut continuance there in their lives before that you know that would kind of bother me. But this seems like pretty pretty onerous and width 80% I mean I've never heard of me. Public university or a non for profit school offering this kind of degrees of how difficult is it to really get these hours done without paying for profit college. It's pretty. Is it that the and wait there but in the bank like I. There are a step for profit and only one community college at Coptic group plan that would. We've all been getting it like we do you have to cut all. Them years to and community college is located at the most are they a lot of it and it's in the case but again there are pretty well. Wow okay. Now here's to meet the big question. Art students taking out federal loans suited to go to these cosmetology schools. Yes absolutely. Both the federal grant program as well as federal. And most resent. Clear that we get data for that went into the 26. The cosmetology school but in nearly one point two billion dollars in federal grant. While and I it's a really interest story get into a lot of detail about scenery a lot of issues with the schools themselves sting students at a classes to go work in the salons to to not only the pain the schools tuitions but they're also. Working effectively for free with in the salons around. Yes that is true and a cosmetology schools that same system for profit when that thing here. At about 200 billion dollars and that is. And the typical is it right city. They can keep all of revenue from those except that the you know. Or at the base so they're like. But well that product that they felt. Mostly women who worked in a are paying for the hours that they're working and me but what can people separate. Hey it is fascinating story it's that merits clawed their from the hacking to report the articles in the New York Times today and I really fascinating report we appreciate you coming on merit thank you very much. You know oftentimes I'd look at these reports and I say well you know that's kind of on the student they chose to go study this and you know they didn't need to study art history and in need to choose this major bitten if you wanna do this in on in any state you're required to have this sort of training that you pretty much have to go to for a good to have you know private for profit institution get the train to do it yet and it's just it seems like a problem with state regulation rather than anything else. Well and look as you mentioned I think you wanna baseline level of competence but I think there's questions as to whether you need this much training for some of these specific jobs department also. Is you know you see this in industries where they say okay we want these onerous requirements because keep competition out. Sure and so that's clearly happening will whip which is certainly what it seems like a mean look I don't have hair anymore but if I did I'd want something someone capable. I don't know if they need you know a full year and a half of training. In order to get to fit that the capable phase necessarily. Specially I mean. Given how I look anyways nothing's gonna do much I mean the fact that only two states in the country allow for apprenticeships for this type of thing right is that speaks of the fact that its books and corrupted they're trying to phase out copter to hold out competition exactly. Folks as we age. Long term care something to make sure that you plan for how quickly would you assets be depleted if he had direct checks to the tune of 141000 dollars every month. According to Jen were the average cost of a private room at a nursing home in New England is just under a 135000. Dollars per year and that average cost expect to do increase to over a 181000. By the year 20/20 eight. If you or a loved one are faced with an unexpected nursing home stay in the haven't done your planning yet. Before Eric that check pick up the phone and call the expert to Cushing and Dolan at 8668. Story. 5699. Cushion and dole has been helping fairways just like you were protect their assets for more than thirty years. They've also put together. A brand new guide for this month called planning for procrastinators. In offering strategies that can help educate you on the steps need to take. To protect your assets and your family. Do not put off this call any longer get your free guide today by calling 8668. Foray. 5699. That's 8668485699. Or download the guide right now at legal exchange show. Dot com. Great little story out of Europe. A bond that is still paying interest 280 years later what the heck is going on here chaos and this is a perpetual bottom of this I found this 1 this morning I just thought it was great. It's a fantastic story it only pays dollar eye skewed to one point two pounds per year. And then it is if if if initially offered in relievers. For a attorney who was working for like Al board back in eighteenth century. France it's it's it's just a fantastic story but it's still paying interest. If the descendants of that attorney can go prove that there actually is dissent. They got to prove that you are a descendant of this eighteenth century attorney and then you get to as you mentioned one point two euros a year yeah. So you can get yourself you know like half cup of coffee ripen like that neo but it sounds you know great but. I just love that this is literally 280 years of interest that is now being paid. On this that just because it's a new perpetual bond which is. Something that's very different some other things that found that were great in here. In 2003. Yale University a while to acquire the world's oldest bond that was still being honored. It dates back to 1648. And it is for me Dutch water authority in its written on goat skin. Professor DL went all the way. The Netherlands to go get his interest payment aquavit I think that's just great. Markets are up well on the back to be really strong jobs report. We're gonna take a break we'll be back in a little bit with more financial exchange. It's not too late to get a great grade and home 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 a faster closing call lead 776917900. 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 as we age long term care or something to make sure you plan for how quickly would you arrest since being depleted if you had to write checks to the tune of 141000. Dollars every month according to Genworth the average customer private room at a nursing home in New England is just under 135000. Dollars per year and an average cost is expected to increase to over 181000. By the year 20/20 eight if you were a loved one are faced with an unexpected nursing home -- when you haven't done your claiming yet before you write that check. Pick up the phone and called experts at Cushing Nolan at 86684. Raped by a 699. Pushing him Dolan has been helping families just like George protect their assets for more than thirty years and they've put together a brand new guide for this month called claiming for procrastinators. It'll look for you strategies that can help educate you on the steps you need to take to protect your assets and your family. Do not put off this call any longer give your free guide today by calling 8668485699. This 8668485699. Or download the guide right now from our website legal exchange showed dot com. Hi this is Barry Armstrong and I've been doing business with leader bank for many years it's not too late to get a great rate on home mortgage meter bank specializes in a wide variety of purchase 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 we're bank is the number one purchase wonder among banks in the state they have sixty loan officers throughout Massachusetts Connecticut and Florida who were ready to help you find the best solution for your mortgage needs at some of the best rates around call 8776917900. That's 8776917900. Thing get your great rate on home mortgage call now and dale milieu a free residential mortgage survival guide detailing the home buying process from pre approval to the closing 8776917900. Is the number to call or visit them online at leader bank dot com. FDIC equal housing lender MLS number 449250. Subject to credit approval leader bank a step ahead. The money matters radio network WB MW Lemmon William and W 275 CM FM good Boston the money matters radio network. Hi this is chuck and Mike from the financial exchanged as we start off 2019. I think if first makes sense Mike to look back a bit at 2018 and talk about some of the big themes that we saw. That move markets create a couple big dips to 10% dips over the course of the year. What caused the more key factors. And just have the ability to add more volatility into both the bond and stock market it definitely saw that 2008. Mike one of the big things this had an impact in particular in the second half of the years the trade conflict between the US and China how do you see that continuing. To affect markets as we move deeper in the 2019. Yeah I mean huge huge issue for a second half eighteen really added a lot of volatility in markets then and certainly it's going to spill over 2009 team. When we look ahead here my personal views on it is I think that we probably get something done on the US China trade deal. Before the end of the year present don't think the president trump once you head into a re election season with eight giant economic headwind. Looming over so that's my personal view but it's really tough to tell. Folks there. Is a lot to look at heading into the new year and so we did put together a brand new guide titled looking ahead to 2019. It's free to get in only have to do is go to Armstrong advisory dot com once again the guide is titled looking ahead to 2019. It doesn't cost you anything to get it in you can download for free at Armstrong advisory dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. In medieval times a sharp was often the difference between victory and defeat. For skiers and riders at Killington. The end point of pride and admiration. No matter your battlefield. The more you prepare for more triumphant. Used to living more life on the edge save up to 40% on lift tickets when you purchase an advance at Killington dot com. 2018 sought a market reached new highs but they were short lived in the year ended with a thud as far as investors are concerned record growth in the stock market may be a fleeting thought as we head into Tony nineteenth so it's incumbent upon you to review your portfolio and your investment strategy hi this is very Armstrong and I can help I've got a brand new guide out this month that will review the ups and downs of the past year while providing you with information and assistance that you'll need as you strive to maintain your assets and see them grow this year's economic forecast is cloudy at best so call right now you can get your free copy of my new guide at 803934001. That's 803934001. Or download it right now at Armstrong advisory dot com. Securities offered to securities America incorporated member femur SIPC and advisory services offered to securities America advisors incorporated Barry Armstrong represented a strong advisory group the securities America companies are unaffiliated representatives of securities America do not offer legal or tax advice always seek the advice of a professional familiar with the laws in your state were. All trying to think outside the box when it comes to giving gifts for special occasions so this year I'd encourage you to call leader bank you can visit all leader bank locations from Arlington to the seaport in Boston and they've got one ounce. And 110 ounce silver and gold bullion coins at all their locations and other precious metals are available upon request these types of purchases can be as Smart investment in addition to being a great gift for someone you love co leader bank today at 8776917900. And learn more about its precious metal collection by your coins in the branch and get them gift wrapped right then and there get a head start on your holiday shopping call right now 8776917900. That's 8776917900. Or visit them online a leader bank dot com for more information. Not a deposit not FDIC insured uninsured by any federal government agency god guaranteed by the bank and may go down in value leader bank. A step ahead it's pretty hard to find a bank that as a checking and savings account that can provide a decent return and if you're in the market for one I've got to deal that you're gonna wanna check out tie this is very Armstrong and I've been doing business with leader bank for many years so if you're in need of a bank with great rates on checking and savings accounts look no further than leader banks Zuma rewards account qualifying customers will receive 1% back on debit charges 10% back at featured businesses no minimum balances required and no monthly fees but that's not all leader banks zug will rewards account has a two point 05%. Annual percentage yield if you're searching for great -- it's time to call leader bank at 8776917900. In addition you'll receive a free information packet featuring a guide to sigma businesses that number again is 8776917900. Or visit them online at -- bank dot com. No deposit to open and an annual percentage yield is ten dollars to 23% interest rate messrs. insulate these reduce earnings were subject to change without notice leader bank a step ahead member of the icy. In new. This is the financial exchange with Barry Armstrong and chuck sound. You're exclusive look at business and financial news affecting your day you're sick leave your war. Stay informed and up today about economic and market trends plus get breaking business news every day. And now the financial exchange with the very Armstrong and chuck son. Got Gordon and welcome into the first Friday of 2019. And the first Friday January 2019 which means it is a jobs Friday and jobs Friday means we get big government jobs report coming out. And we had a heck of a jobs report that we're gonna dig into right now. Checked out a Mike Armstrong and Matt heiress. Various I'm almost nailed it but I told him terrible with names almost got it but didn't quite get there but Mike. Let's let's look at this jobs report a little bit what stands out Unifirst look at. I mean the top line numbers just huge 3121000. Jobs. Vs expectations of 176000. I think we had one better month this year in February but that was it. And then the the wage growth. The wage growth was really really Big Three point 2% from a year ago zero point 4% month over month which did you say what 5% annualized rate. A huge numbers both in terms of the number of jobs created as well as the the wage increases. And again we're looking for. Month over month big increases and that this this showed Mike what we're we're talking let's. Moved the underlying data in here of you know. What do the numbers that we like to look at a lot is what's called the U six which is the under employment number. When I dug through that this morning it stayed at seven point 6% same places had been in the previous month and despite the fact that you saw. The headline unemployment number go from 37239. So to me. This suggests that some of the slack that have been in the labor force people that you know working part time that wanna be full time people like that. Some of that slack continues to come out of the labor market if we go back to a year ago to December of 2017. Big gap between the U six under employment. In the use three that the headline number was four point 1% that was the difference today it's down to three point seven seed seemed further compression there over the last year. It suggests that they did there's beens still some slack in this labor market. But if it's starting to dry up at this point I guess the question that everyone has look how much longer can you continue to add jobs in this fashion. There's been a lot of economists who may have 34 years ago said they were getting close to full employment we're not going to be able to add more jobs will be able been wrong so. I guess the question that still is out there that look I don't have an answer to it but. I just wonder in unit labor market that's this tight I don't know if you can have back to back to back to back to back months of 300000 jobs created a hostile take it from one. Yeah day I don't know how long can last but overall very strong reports and you know oftentimes we get these reports. Rated the market react very negatively. But today we've. All but wiped out the losses from yesterday's Dow is up 646. Points as we speak and a lot of that has to do with the fact the Jerome Powell is. Having a big speech Arabic roundtable right now and is coming across. Fairly dovish. Yeah I think it's important to talk about what Jerome Powell is saying. Number one saying he and this is a quote saying that the Fed will be patient with monetary policy. So clearly saying hey look we're not here just try to raise rates for the sake of raising rates. Also saying that they would potentially consider making changes on how they're dealing with the Fed balance sheet remember that right now. The Fed is selling off some of the bonds on its balance sheet and so what that has the effect of doing. Is it creates more supply of bonds both US treasuries and mortgage backed securities the Fed is no longer buying. So you need to find buyers for those in the and that's a question it's out there as they are there going to be enough buyers. For these assets that are coming off the Fed's balance sheet but Powell saying hey look we could reconsider that we can make changes there if we need to. I think the big message that he's sending today is that the Fed is willing to be flexible on pivot if they need to. Which is a stark contrast to what we've seen the last couple times that we've seen Powell where. You know pretty much the last time he said look we're we're not making changes on the balance sheet reduction. In the time before that he said were a long way from neutral on interest rates which is kind of what you spooked markets to begin with to a certain extent. This has the potential BA much more accommodative fed in 2019 now what does that actually mean. It has the potential to mean that the Fed is willing to act as a backstop of sorts for the stock market at least that there's a chance they well. I still don't think he's given clear guidance that hey we're going to do this. But it seems like they're more open to backstop in different markets if needed. Which is somewhat of a pivot even from a few months ago and to meet what would what I struggle with the 'cause of that then. Is if the Fed is exhibiting at that pace to OK we're a long way from neutral hey we've got to be patient and we're not necessarily making changes. How do you know how consistent the Fed is going to be from one month to the next that. Yet my concern choose I'm looking at all these comments and they clearly had thought of what they are going to be discussing today. And no one's talked about today's jobs report. And and I still think they should do you know they'd they should know. But at this jobs report really backs up. Everything that two room house in doing team ai you've had everyone's saying that he's taken the wrong approach Kremer is just. Destroyed and president Trevor had to go all fallen out over the last two months yeah but you know what is jobs report really backs up which room piles and. And impart me. Like watching this I almost wanna Jerome Powell to come out just like. Ripped his shirt off and just like flex and always want to go walk often just say I'm Don like he just like his it is somewhat vindication it's in its. It's saying look I I know everyone's being critical but. Things are still good enough that I have really slowed anything down too much. I do think there's questions going forward just because when we look at jobs reports. Think about it here being hired in December oh yeah the decision for that higher to be made. That job was posted gains August September or October it was posted two or three months before. So I think the next few once again be really instructive here just because. Things kind of started fallen apart in early October that's when it start in an accelerated in December so I'm gonna be really curious what kinds of hiring decisions are being made now that we're not going to see until February or march. That's that's kind of the the next piece here just because. If it's almost hard in December of that decision was made by UPS by FedEx by whoever three months before hand. It's now come panic come into the point hey. Things don't look as good as they did back in August and September. Are we going to still have the same hiring plans and so this is where I think it's gonna be really interesting. Don't forward here. And this is where I do think the Fed does after a certain extent be a little bit more nimble but it just one more consistency of message edged don't like the pivot from. We're a long way from neutral to work and be patient in two months later that's a quick pivot for me. And I'd rather have the Fed be more consistent in fall little bit behind. Then looking and hours then it's OK now they're saying they're gonna be patient what if inflation picks up at an Elvis and gonna get way more hawkish like. Yeah and I think we need to pay attention to his work is one thing that has been consistent has been. Look we're going to look at the data on a month to month basis and make decisions that are based purely on the day and that that messaging hasn't really changed yap. I think his commentary about we're following future was a little bit net early. And a little bit too hawkish but. It generally speaking I think they've been varied data dependent and messaging around I think has. In pretty good in in looking at if you believe the feds if you believe. Then the message that you need to take away from that is hey if things we can were there Rex is not what he was saying three months ago and in and that's that's a shift. That I think investors need to take note. Let's talk about what China's Central Bank is due to gypsum panels for what we did a whole question what what were you go through. Are so I if you want to spend poll financial exchange showed dot com. Has Hewitt jobs are you looking for a new job in 2090. No wages are up through the tree in half percents. You know I know I see. Listing for open jobs all over the place driving driving is inching bad back on the highway. Oh yeah every third billboard was for truck driver. Really advertising effort for you know but you have your truck drivers later in this through the midwest or idea all over Indiana Ohio Chicago. In do you have your CDL. No questions asked we need to do any places zinni the billboard's list wages. One of them did it was way below it hasn't it's pretty grim realism like rural Ohio by news news like you know make over 40000 dollars a year. Tractor. Tractor can. Six figures that's especially if you have like Hazmat licenses and stuff like that that's where you really start to get you know open up in the dollar but that might have been that bright primary could have been like entry level starting wage for CDO tractor. Feel free to text us as well at 63566. If you're thinking about switching jobs this year may be what field are you looking to get into when you look at the switch what is no but Texas at 63566. With any thought to have there. Let's take a break when we come back really trivia and also talk about China's bank in what they are doing right now to try to keep the Chinese economy afloat that's right after this break. This little tour everything business and finance it's the financial exchange with Barry Armstrong and chunks of on the financial exchange radio that. Work the calendar has turned and new years here after the way the market ended in 2018 we may not want to look back but in addition to reviewing what was it's also time to look ahead hi this is bear strong and I'd like to ask you to also reflect on your financial well being and your investment strategy as we head into 2019 the markets are still volatile many believe the economy is slowing and were on the brink of a recession trade with China continues to be an issue so what does 2019 holds for us Everett a brand new guy they'll help you look back on the roller coaster year while providing you with guidance to keep your portfolio strong and growing it's called the 2018 year in review and 2019 forecast and you can get your free copy by calling 803934001. That's 803934001. Or download it right now at Armstrong advisory dot com. Dirty Zapatistas are incorporated remember him as a PC advisory service as the protestors are about corporate barriers are represented a advisory group security company and affiliate opportunity to secure is America to go to the legal or tax advice always acutely superficially with the laws in your state. As we age long term care or something to make sure you plan for how quickly would you arrest since being depleted if you had to write checks to the tune of 141000. Dollars every month according to Genworth the average customer private room at a nursing home in New England is just under 135000. Dollars per year and then average cost is expected to increase to over 181000. By the year 20/20 eight if you were a loved one are faced with an unexpected nursing home state and haven't done your claiming yet before you write that check. Pick up the phone and call the experts at Cushing Nolan at 8668485699. Cushing Dolan has been helping families just like George protect their assets for more than thirty years and they put together a brand new guide for this month called planning for procrastinators. And look for you strategies that can help educate you on the steps you need to take to protect your assets and your family. Do not put off this call any longer give your free guide today by calling 8668485699. 8668485699. Or download the guide right now from our website legal exchange showed dot com. Hi this is Barry Armstrong and I've been doing business with leader bank for many years it's not too late to get a great rate on home mortgage -- bank specializes in a wide variety of purchase 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 we're bank is the number one purchase wonder among banks in the state they have sixty loan officers throughout Massachusetts Connecticut and Florida who are ready to help you find the best solution for your mortgage needs at some of the best rates around call 8776917900. That's 8776917900. -- get your great rate on home mortgage call now and they'll mail you a free residential mortgage survival guide detailing the home buying process from pre approval to the closing 87769178900. Is the number to call or visit them online at leader bank. Dot com member FDIC's equal housing lender MLS number four corner and to try to zero subject your credit approval leader bank a step ahead if you're real estate property management company you -- -- banking partner that has all the right tools to keep your operation efficient -- bank is one of these premier banks in the property management and real estate space offering a suite of unique products and cash management services to help you collect -- managed Condo association payments in digitized paper checks hi this is chuck is not a we'd bank utilizing state of the art technology to offer convenient banking services to which real estate clients such as a CH payments mobile banking promote check scanners in its innovative -- rent payment platform -- bank has a team of business bankers that are on call to help you welcome your place of business to make it as easy as possible number to call your interest did is 8776917900. That's 8776917900. Find out why many of greater Boston's premier property management and real estate companies -- -- bank is they're banking partner call 8776917900. Or email BBO leader bank dot com for more information member FDIC equal housing one. The financial exchange. Is Cole a brutal England and also now in West Palm Beach, Florida. Check out our website at financial exchange showed Doug come and find the station closest to you. This is the financial exchange radio network. Couple good Tex coming in one through 774. Local truck driver here with fifteen years of experience. Would not recommend the industry still very little respect for drivers. It is getting better but very very slowly by the way Hazmat and taker license holder. And so well into some interesting thoughts on some from someone. Ian the trucking industry 200 tribute hour to wanna go to story. Come on guys help me out trivia what do you want what do you guys want to okay. So we're gonna do Tribune we do trivia every day on the financial exchange trivia is brought to you by the Armstrong advisory group. With markets still volatile now's a great time to review your portfolio so call 800. 3934001. Incident your free no obligation consultation today it's 80393. 400. Wants a normal either Matt or talker puts together. The the trivia for the day is is that raiders most of that's hurt you you do usually me OK usually Matt puts together 96% of the time he's right on the ball in terms of what we should be doing. He won a little Nadia on this one so I'm gonna take the opportunity go even a little nutty year. As you know I I love dumb action movies. So we when I take over ID dumb action movie trivia so today we're doing trivia based on the movie. Twister which came out in 1996 nearly 23 years ago came out in May of 96 so now we're getting close to 23 years there. And so you know the right answer to this trivia question Texas at 63566. If you're the third person with the right answer is this one's kinda tough. Then you can get a fifty dollar gas card. To the gas station of your choice to sort trivia question today. It's tough day is if the movie twister. Where does. The aunts. Of Helen hunt's character we have what's the tell our own. That Helen hunt's aunt lives in in the movie twister the third person with the right answer. Is going to get that fifty dollar gas card in Texas at 63566. You know the right answer in what talent. In the movie twister does Helen hunt's can't live a startling predictions on the Oscars every time highs in points and against this region like. Forty core it's mentioned multiple times in the movie it's any big sign on the side of the water tower it's it's talked about multiple times in this movie again in what town in the movie twister this Helen hunt's on its. Live text 63566. And bullets know what the right answer is in just a little bit. China's Central Bank also deciding to. Make some changes to try to keep the Chinese economy afloat what are they doing yes so what they're doing is there rather cutting the reserve ratios of what this means. For Iran does not understand what that's what this really comes down to you you go deposit hundred dollars the bank. In the United States the bank can and loan out too much ninety's did ninetieth that a hundred dollars to make mortgages or two you make a business loan. And they need to keep a reserve of that money safe in case you need that money. China most emerging markets have much higher reserve requirements in the United States because there congress are just not quite a stable even. But the Chinese bank has cut there's four times last year in this is the fifth time they've made a cut bring it down and another one percentage point by the end of January. In part of this is probably in response to you've gotten some really bad data out of China in the last couple months show that their economy continues to slow. And so this is gonna end up releasing about a 116 billion dollars worth of liquidity into the Chinese economy if banks are willing to lend it. I've I think there are probably questions about whether they can lend that money responsibly and whether or not the sins of making things weren't questions right whale. Let them responsibly. I am really really this is something that boosted the market yesterday in China and after a really tough day with apple saying you know they're seeing huge slowdown in China. And so I see why they did it's. Let me long term this is so concern. What concerns you most about from a long term perspective it I just look at the corporate debt market and not only in China I look at the corporate debt market worldwide it's been called up by the IMF has very concerning the amount of low credit quality loans that have been made to companies that is probably can't pay them back and and there's just you don't see the population growth you don't see the GDP growth. In China that you would need to be able to support to these companies really succeeding next decade and in turn. Of you know win when you look at the the places where that loan growth is is is kind of been most. Nerve wracking for me at least at the energy sector just because you've seen in a particular. Some of the American crackers we talked about this yesterday. But it's. A lot of the fracking companies are finding that the estimates they had made for how much oil they were gonna get out of the ground. Where else are way off and they're they're pulling out significantly less oil. And also. Seeing much faster rates of degradation of those well also wears they expected production to decline maybe 5% year. Is declining fifteen to 20% a year which is a big difference. And so I would get some of those companies in the fracking sector in the US and I say. That that iriki get pretty ugly especially PC oil prices continues stay in the forties or even dip into the thirties at some point. Yeah man attic that area definitely concerns mean well struggled a bit about how losing in Toronto and Vancouver which I believe the two largest cities in Canada I'm not mistaken. Sales in the Toronto region fell 16%. Year over year the average price of those sales fell four point 3%. In Vancouver. Full year sales fell 32%. Hughes which was the lowest number since 2025%. Below the ten year average. What kind of reasons or are we seeing cited for these decline. As asked a cut away the headline numbers they are pretty concerning here and worry about them but we have to keep in mind that. Candidate passed a budget new federal laws. That made much tougher qualify for mortgage which is good which is a good thing right it prevents. Our financial crisis that we sell back in no way to denies it's not a bad thing. But when you have hold much new regulations not only do less people qualify for the mortgages written but banks don't really know how to him too corporate these regulations usually so. For a period of time they're just not processing has many applications they're being more hesitant than they probably need to be. In borrowers are being more distance users and I don't wanna get rejected for alone. It's a big long process that we have to go through it from knocking approved anyway why even applaud so there is combining forces here but you know there is the overreaching pain that hey interest rates are up we're seeing similar declines in the United States and onion is stressed. But this is not a case where you just saw you know 30% decline in sales just because they were 30% less byers was paid there might be a reason for there being 30% less buyers in net. Lenders are being forced and higher standards in can't make loans to people that previously might have made loans. So just you know might be a good lesson for us here in the states. Probably shouldn't be able to buy a home with 1%. Do you think we'll take Alison. Usually we don't we we don't tend to be very good at those. Let's take a quick look at markets right now just to see how things are reacting. Boast to the positive job report also Jane Powell's continued. Roundtable he's conducting with Janet Yellen. At the moment Bernanke's there to. I haven't seen Bernanke. He's got a great beard he does it's got a great beer Dow Jones up 577. Points the S&P is up 64 NASDAQ up to 29 so. Broad based rally happening across US markets right now oil at the moment up to. Point 65% back up to forty eight's we've had a nice little bounce off the low forties. Oil which makes me feel a little bit better about that sector right now. Gold at the moment die alone at nine dollars and seventy cents an ounce to 1285. Place that we've seen an awful lot of volatility recently is in the bond market. And it's no different today the US ten year treasury. Back up to two point 65% had been his lowest 2.5 five yesterday after being at 3.2. Less than a month ago so. If if you're someone who is buying a home in the near future. The rates that your being quoted might not end up being the rates that you end up seeing when he finally by your place analysts are already locked in on your rates just because they're moving around quite a bit. I don't know whether you're gonna go higher or lower in the short term but just be prepared if you're buying a house. The rate on your mortgage could be different thirty days from now if you've not yet locked in that rate. We're gonna take a break when we come back we've got the answer to trivia and questions about the cost. Of prescription. The financial exchanges and live on FaceBook so make sure to like your page and watched the guys break down the latest on the market every day beginning at ten on the financial exchange radio network. For those of us with older parents the idea of having to move one of them to a nursing home can be a scary thought indeed a New England according to Genworth the average yearly cost of a private room is almost 135000. Dollars that number is expected to be increased by 25%. By the year 20/20 eight think about paying over 180000. Dollars a year for your mom to be in a nursing home and how dramatically your financial situation would change under those circumstances. If a nursing home stays in near term possibility and you haven't done your claiming that. It's time to call the experts at Cushing in Dolan they've got a brand new guide of this month called planning for procrastinators. They've been helping families just like George for the past thirty years and they can help you do don't put us today when you might really need to do tomorrow. Call right now get this free guided 8668485699. Protect your assets and your family call 866845699. For your free guide or you can download it right now and our website legal exchange showed dot com. That's legal exchange showed dot com. In medieval times a sharp was often the difference between victory and defeat. For skiers and riders at Killington. The end point of pride and admiration. No matter your battlefield the more you prepare for more triumphant. Here's to living more life on the edge save up to 40% on lift tickets when you purchase an advance at Killington dot com. If you're real estate property management company you need -- banking partner that has all the right tools to keep your operation efficient leader bank is one of these 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 in digitized paper checks hi this is chuck Zelda -- to bank utilizes state of the art technology to offer convenient banking services to its real estate clients such as a CH payments mobile banking promote check scanners and its innovative -- rent payment platform leader bank has a team of business bankers that are on -- help you know come to your place of business to make it as easy as possible number to call your interest did is 8776917900. That's 8776917900. Find out why many of greater Boston's premier property management and real estate companies choose leader bank is they're banking partner call 8776917900. Or email BBO what a leader bank dot com for more information member FDIC equal housing one. This is a special announcement for all landlords chasing down only rent payments and making trips to the bank to deposit checks take a hassle out of rent today with zero and leader banks all mine rent collection tool he read automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot meant to learn more we see rent your payments for each unit to receive regularly on the same day every moment tenants pay nothing in the first six months or free for all landlords visit WWW dug see rent dot meant to learn more or call 7816418691. Very our short here and I'm joined by estate planning attorney Todd let's cue from the law firm of Cushing in dole and with your legal exchange quick tip of the day. We're talking about last minute planning techniques that can help you save your assets. Todd we've always talked about married couples in the past. What can be done to save the assets for widow or or single person. You know that's really important because we see that more and more today you know you've got people who have lost spouses or art or like you say it never got married planning has. People even last minute planning works for them example let's say you have a house and you have some money. And you get sick and you go in the nursing home people gonna fail I got to write the check now maybe not. Call right because what we would do is we would allow that house to be considered non accountable for users away for us to do that even when you're single and you're not living there so they want. Count them. They might lead but they won't count it. And then the money. Depending on your rage we can do one of two things we can either buy and Medicaid annuity for you which would stretch out the money over a long period of time allowing you to pay a Medicaid rate which is about six grand a month vs fifteen grand a month private pay so huge leverage there. Or if you if the Medicaid in order doesn't work out you could do something called a pooled trust where you take assets and put it in such a special trust that allows you to get eligible for Medicaid. It may sound complicated but Cushing and dole has written a guide especially for those of you who have put off doing your planning and are now faced with a last minute nursing home situation request this brand new guide from crushing in dole and by dialing. 8668485699. It's called planning for the procrastinators. 8668485699. If you want to guide right now. Go to their website legal exchange showed dot com that's legal exchange showed dot com or call them toll free at 8668485699. You might not be able to keep up with all the latest business and finance news but we can fix the financial exchange with Barry Armstrong and chuck soda on the financial exchange radio network. Okay. Sort trivia question last segments. Was in the movie twister. What is these two known that Helen hunt's aunt lives in we get some interesting answers to this I wanna read some of the wrong ones first before you get to the right one summit where they'll close at least we had wholesome. To peca so kind of in the right ballpark. Then we had someone who broke Maine which is neither a town nor in the part of the country gets tornadoes on a regular basis. And we got some who wrote Cleveland as well which. Look my mother's from Cleveland so all of the city but drove through Cleveland today as you would think. Couldn't on the come up they're coming back. It has one of the sharpest turns on highways and I've ever seen in my life even sharper than the ones down in like New Haven on 95 is that pretty wiggly. Ninety's I ninety turned around thirty miles an hour we've really had. That's not fun so the correct answer actually we had a whole bunch of I think we got close to sixty right answers actually. But the correct answer was the talent of what key down and who had the right answer image. On from Nashua had the third correct answers and taken on that fifty dollar gas card and trivia it's today's brought to you by the Shura advisory group. With the market still volatile that was a great time for review of your portfolio call 803934001. And set up your free. No obligation consultation today again 803934001. Sprint stick. In the midwest right now with the a story out of corn country apparently corn farmers will nervous because they thought they were gonna be getting a potential boost to read the the buyers for their product because of an increase in the amount of ethanol they could put into gasoline. But that's on hold right now how come. Yes so there was going to be right now with the most ethanol you can put into the gas mixture in the Summers sat 10% and get a bump up to 15%. EPA had to approve it but then there are also. Anticipating that they'd get sued after they approve it and this whole thing is now being put on hold because nobody EPA's work. And so the big concern is does this get done in time for you know what was in just paid to be a big big change come in the summer. Is do we know so how long are we gonna be in limbo on this issue until the government shutdowns which we have. No information on as far as an announcement they say the big question is not you know presumably the government shut down is not last until June this year. But the big question is okay let's say the EPA changes this rule on January 30. It might take four months of legal challenges to get this all done. Which they remain on compression before in the summer season they're really trying to push this so might not mean anything anyway is it might not be relevant and tells summer of 20/20 in which case these firms. That would be my plan for this and it's not there the bigger government shut down an issue that icy though which you know I talked about this morning is the potential for tax refunds. To iris camp process tax reforms right now I don't think a lot of people realize that you're they're you're still expected to pay your tax bill. But if you're expecting a refund on time and government shut down a still going on not happen folks you will not be getting those refunds as long as there's shut that place. A pretty much the the way that the IRS is set up at the moment. Is. Tax refunds is what's called a non excepted activities in buy except I mean EXCEP. Whatever it's not except. I don't know anyways. What this gave our work is that the people that are tasked with processing refunds. They're furloughed right now. So this is not something that is qualified is what is quote necessary for the safety of human life for protection of government property and so. At the moment the way the iris set up they're not capable of processing refunds right now so today it doesn't matter is January force. You get up towards the end of January even mid January or some pedophile in mid January expecting a refund you know in the near future. You might not be able to get one so. People up and are just keep that in mind that that's what this part of the reason why I think this thing has to be done in the next week is otherwise you can have a whole bunch of angry people. You can you can mess of people would just about anything if nothing else I I bet you if nothing else congress and senate pushes through a specific thing to get those people back to yet just to get literally the higher refund process back to work as you can mess of people on a lot of different things. If you don't give them money when they're supposed to get it it doesn't end well especially with their money. Right especially funny that you loaned to the government that you need back yes so I would imagine there will be a some kind of stop gap at the very least ever right now. Government can't process tax response. Now poster calendars turn in new years here in after the way the market ended and 28 team we may not want to look back but in addition to reviewing what was. It's also time to take a look at this is Mike are sure on it like to ask you do also reflect on your financial well being. In your investment strategy as we head into 2019 the marks to still volatile and many believe the economy is slowing and we're on the brink of a recession. Trade with China continues to be an issue so what does twin nineteen holds for us. We've written a brand new guy that help you look back on the roller coaster year that just ended also providing guidance to keep your portfolio is strong and grow. It's called the 2018 year review in between nineteen forecast and you can get your free copy by calling 803934001. Again that's 803934001. Or download it right now at Armstrong advisory dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Texan we just got it on the text line for 816. Tip for young guys considering trucking most companies won't hire someone for local work until they've accumulated two years of successful over the road North American experience. Candidate should shop for firms offering free training some firms. Offer. Free flights free dormitories free meals and a stipend. Went on the road with your trailer that's from Geary the former trucker feel like we always get the best text from truckers just because. Eight they know so much about and in street I don't know nearly enough about and beat they they always seem wound people now what is it's very nice to see I was like that. Good taxed at 15% ethanol in gasoline is very bad idea personal and destroys engines especially smaller and just drew yeah hey I I don't really wanna put 15% and on my part that's not great for smog to future drive you know like LA. You don't want that stuff in the air. And now for a story that should probably go make most people wonder gee what Tex going on and how is this could possibly legal or the way things work. So the headline from this story on Bloomberg is the this bottle of pills cost twenty dollars and one state in a 130. In another. What exactly is the thesis of this article. So one shocked by this that's just unbelievable but. Our health care system in this country so complicated. So each state runs its own Medicaid system yup. And today all. Most of them outsource a lot of this work to private companies to negotiate the price appeals that they get the price of prescriptions that they again how much Medicaid pays for it. And companies like CDS like you know a lot of these different private companies that do is negotiating. They just. It's not consistent across state to state so this isn't really what individuals are paying it's what Medicaid reimbursement is paying for the news. But it effect it's what we're all paying at the end of the day please we all fund Medicare. So to give you an example generic next Zeum okay which nearly neck seems for harper and it's it's just about it ever ones at harper and it's points this is easily relatable. In Kentucky. Generic next CO OK the cost Ford the pharmacy. Is fifteen dollars. The cost to state Medicaid plans a 149 meaning it costs a 164 dollars for people in Kentucky to get generic Mexican. In New Jersey the cost is 56 dollars. Any Illinois it's 21 dollars. Completely different just across three different states in uneven three dramatically different states there. I'll go one step further for Mike can you pronounce the name there's this other drug. It but I believe it's called him a tentative note. Rested her. In the Tenet is a generic go evict prescription. In Indiana it costs 8900. In seven dollars. In Oregon because 5633. This is used to treat leukemia that's that's why it's you know high cost road to begin Lewis. In Washington State. It cost 3000 in 71 dollars in in fat arms are it cost 2876. Somehow Washington State. Actually sells the drug to people on Medicaid cheaper than they buy it from the company. Whereas Indiana charges they mark of 5800 dollars for the prescription. So it's not even the case were prescription drug costs are uniform across the US you have differences from state to state from pharmacy department. There are completely different prices just based on where you live and how your state programs may have been able to negotiate solutions. Well I know I I don't it is us it is. The most complicate I think it might be in most complicated Harvard US I think about if if you were on. This drug but let me say geologist moved to Washington and all of us and it's a whole lot cheaper for me to get tree. There. This has nothing to do Medicaid but I I I haven't epi pen in case aggregate. Ottawa give people ways to kill me but cavalier you are allergic to talk again. I went to the pharmacy you know like. This is so complicated but it raft of charges like 300 boxes for the epic yes. That that I can buy your insurance might reimburse you. Two days later I got a check for my interest a bit like 260 box but what is going how does this work. One while I happening of one RP seven years ago I had my appendix taken right. And so I finally get the bill from the hospital. And it goes OK it was gonna cost 2000 dollars at your appendix taken now but we gave a discount because of your insurance and your insurance covered this please pay us a hundred dollars so like I paid you know hundred dollars my appendix taken as a that's great I paid a hundred dollars mega in appendix taken out of my body what a good deal. Two months later I get a check for 200 dollars back from the insurance company. For the procedure so now I've got to somehow the insurance company. He gave me a net. Dollar value of a hundred dollars to take my answer to take my appendix excellent with a good with your pen which makes me wonder in what the Third World country is my appendix now being used by someone. Forgot one. Like it it's out there somewhere. And my insurance company actually he'd be to get my appendix taken out I'll hope it just wasn't for cloning purposes. You know like we really need more of me that's and not even I want now. We're gonna take a break now when we come back polar Monica from CNN business is gonna join us talk but apple after their big move downward. Yesterday. And include. Every juncture in the financial exchange on FaceBook FaceBook dot com slash the financial exchange this is the financial exchange radio network as we age long term care or something to make sure you plan for how quickly would you arrest since being depleted if you had to write checks to the tune of 141000. Dollars every month according to Genworth the average cost of a private room at a nursing home in New England is just under 135000. Dollars per year and an average cost is expected to increase to over 181000. By the year 20/20 eight if you were a loved one are faced with an unexpected nursing home state when you haven't done your claiming yet before you write that check. Pick up the phone and call the experts at Cushing Nolan at 8668485699. Pushing him Dolan has been helping families just like George protect their assets for more than thirty years and they've put together a brand new guide for this month called claiming for procrastinators. It'll look for you strategies that can help educate you on the steps you need to take to protect your assets and your family. Do not put off this call any longer give your free guide today by calling 8668485699. That's 8668485699. Or download the guide right now from our website legal exchange showed dot com. Your dream home is within reach with a Jumbo mortgage a loan from leader bank the Jumbo loan program designed for financing in excess of 500000 dollars offers extra variable rates for both purchases and refinances all originations are managed by a 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 449250. Subject current approval leader bank a step ahead. If -- -- real estate property management company you need to banking partner that has all the right tools to keep your operation efficient leader bank is one of these 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 in digitize paper checks hi this is chuck is not a we'd bank utilizing state of the art technology to offer convenient banking services to which real estate clients such as a CH payments mobile banking promote check scanners and its innovative -- rent payment platform leader bank has a team of business bankers that are on call help you welcome your place of business to make it as easy as possible number to call your interest did is 8776917900. That's 8776917900. Find out why many of greater Boston's premier property management and real estate companies choose leader bank is they're banking partner call 8776917900. Or email BBO it leader bank dot com for more information member FDIC equal housing -- Dirty suffered histories are incorporated can SN BC and advisory services officers attorneys are devices incorporated Terry or are represented a strong advisory group and secure America companies or an affiliated representatives etc. America to go to the legal tax advice always give voice and professionally with the laws in your state. This is a special announcement for all landlords chasing down only rent payments and making trips to the bank to deposit checks take a hassle out of Iran today -- zero and leader banks all mine rent collection tool zero automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot net to learn more we see rent your payments for each unit received regularly on the same day every moment tenants pay nothing in the first six months or free throw landlords visit WWW dug see rent dot meant to learn more or call 7816418691. Security suffered two securities America each member finreg SIPC. Advisory services arbiters securities America advisors think Gary Armstrong represented at Armstrong advisory group in the securities America companies are unaffiliated. We wanna hear from you. Thanks Steward Barry's 263566. And let us know what you think about the stories we discuss your team to the financial exchange radio network. Paula Monica joins us for the first time in 2019 years talked about apple and Paul thanks for joining us today. It and same view I hope. Markets in 2019 their little better than they weren't when he eighteen. But it looks like apples off to have a rough start that might be the understatement of in the first week in that. They were down about 10% yesterday. And I'm curious just to gain your thoughts in general about what you took from both the statement and interview from Tim Cook. Yeah you know apple is rebounding today along with rest the market point 3% but I think what. The Apple's sales warning comments from in a relief should always just. The worst key to be yours they mania apple. Observers to pack for awhile which. You know. The company becoming one trick pony I was always on me. You know the good news was that for a long time yet. IBB. For. For apple but it was kind of like secretary there in Paris but at that point he'd be right betting on open. He really is starting to become more admitted that. Sales growth for the guy who slowed consumers are not going to be excited about these Gary increments all. And revolutionary up a minute think you know there's a lot questions about. The upgrade cycle and whether or not people really want it and then iteration. That its own just you know. Perfect example why should since the extent. Finally need to get replaced as the screen cracked in mind that replaces we've been it I've certainly. I think in I like the features on some of the old war to be you know. You couple that with the concerns about China which are obvious that something meaningful national. We talked about earnings call that the next few weeks. And you know understandable why apple finally you know it off with. All. It in the revised guidance that they put out they noted that almost all of the revenue slowdown. Was because slowdown in iPhone in China and I'm I'm curious. Why we're seeing more of a slowdown in China with the iPhone than anywhere else is it because of the Chinese economy's slowing changing preferences in China. That the trade conflict in Chinese patriotism and just not one to buy apple phones it do we have any sense as to why China was more adversely affected than any other part of the world they meant. I I think part of it is the the tariffs and trade war are starting to have an effect on. Chinese consumers even some of the more affluent you know Chinese can word and I the as you pointed out you know their DBE. Some patriotism that plays well I mean it's been a purely to be patriotism as much as. You'll see I've been a piece is a lot of competition like it does around the rest the world from. And direct frozen there are plenty in great options not just that. You know one from Chinese companies you know the extent that probably. You know I think while away. And the other speak Chinese. Smartphone buyers are like teeing ground it's been well. All the big the big push Apple's been making over the last couple years is to try to grow their services revenue and that they're doing a really good job but they're going to be I think close to 45 to 47 billion dollars this year and services. And and there are still growing that segment in about a 30% clip a year. When you have a company that does as much revenue was apple does. There's not enough to offset near the short term lack of sales for the iPhone some curious if you think there's anything else they can do in the short term. To try to boost things up while they wait for that service is revenue to catch up. Yeah that's great point and I think honestly and this is not like it at all the issue. It's an apple is that it he Q once incurred to Wall Street. That it can be column were to be good company think. What that is transitioning to in order you product or service. Necessarily. Had thought it would look at services the growth there the bill. It depends on people fine I this sort. Word services group B charger people talk a lot about a company like Microsoft which. You know when you think of Microsoft a few years ago mean in count one we were doing was selling. PC software windows. You offenses that are out the need that the transition with the clout in this spot and it in many respects and much different company. I think with apple could make the argument that. Think it's yet to keep jobs can go up hadn't really done much other than one with the ball in the off. He's done quite well scored a couple of touchdowns but it just like every night the day. Apple with a New England Patriots could. Yes Atlanta playoffs weary. But you know apple definitely I think is a company that need to prove that they can beat some of those upstarts out there and attack. Very good Paul thanks for joining us we appreciate it. Paul Monica from CNN business talking about apple. Take a look at markets just as we head towards the top of the doubt no doubt is now 651. Points at the moment. The S&P is up sixty no 71 points now. NASDAQ up to 42 almost 4%. So really good day in markets overall right now I mean you you take a look just that we're we are. At the moment here. And pretty much all the losses from yesterday made up and then some at this point. So would a decent. Decent start to 2019 at least through Mayo noon on the third day of trading damn arrogant or just pavement. Wait wiping out mr. some big things coming next week British parliament back in session in trying to do you look for exit so we'll see that moves markets next week. So we got for today enjoy the weekend we are back on Monday.