AI Regulation and Future of Work

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Join Michael Batnick and Ben Carlson as they talk about what they're reading, writing, and watching. All opinions expressed by Michael and Ben are solely their own opinion and do not reflect the opinion of Ridholst Wealth Management. This podcast is for informational purposes only and should not be relied upon for any investment decisions. Clients of Britholt's Wealth Management may maintain positions in the securities discussed in this podcast. Welcome to animal Sirpits with Michael and Ben. Michael, I want to talk about unsatisfying conclusions because I think since the Great Financial Crisis, a lot of people have wanted a satisfying conclusion to the market , right? They want something to be definitive . And we haven't had that. twenty twenty two was a bear market. It wasn't a definitive bear market, right? It was just it happened. We moved on. COVID was a crash. It wasn't definitive. We moved on. Everything has happened since the Great Financial Crisis we moved on from. So I think when the SpaceX IPO, people wanted there to be a definitive, uh , this is it. They wanted to see like a five hundred percent pop or whatever, like a dot com IPO or a crash. And I know that the stock took off and it's taking off a little more today, but we're not getting anything definitive. And so I'm just throwing out the potential for an unsatisfying conclusion to the whole AI thing , right? Some people want this to be a bubble with dot com thing that crashes , right? Other people want it to be this life changing thing that's going to take economic growth to fourteen percent per year or something . The unsatisfying conclusion is we get a wash out at some point but it',s not end an of the world crash . And the world moves on because AI is a life changing technology and that's probably a buying opportunity. Thoughts. From your lips to God's ears, that would be and no one's satisfied with that conclusion . Unlike the end of Road Prudition, I don't know why I just thought of that movie as an unsatisfying conclusion . Boy, that was , you know, that part of that movie was filmed in the coast of Lake Michigan. Okay . Yeah, that would be fantastic. No bubble, no crash. I think most reasonable people would like to avoid both of those outcomes. But I still think like this is going to leave there's going to be a washout at some point. There's probably going to be a bear market from this, but I don't necessarily think that means it has to be this like life altering crash. Maybe, but I'm just I'm throwing that potential out there for people who it would, let's say we had a twenty five to thirty percent bear market and the world didn't fall apart. And it was a great buying opportunity and the market recovered in a year and a half or two . And all the people who were screaming bubble would go, man, really that was it ? Ben, I think two weeks ago , you said something to the effects of this has to end badly. And I said I was going to take the other side of that next week . Sure. I never did that because you know, whatever , we forgot everything that we know investing , the history of investing , and some of the immutable laws of stock market driven by fear and greed and human behavior. And that's the part of it that has never changed and will never change. It doesn't matter if you're talking about nineteen twenty three , nineteen forty six, I mean, whatever. We were human beings a hundred years ago. We'll be human beings five hundred years from now. And so every thing in the back of our brain wants to go to the place that this has to end in a bubble . It just has to . But maybe it doesn't , maybe it doesn't. Like that that stock market stat that we discuss all the time from Peter Bernstein , where he spoke about and when he came into the business , I think in the nineteen fifties , there was a whole generation of investors that was obviously still scarred from the stock market crash in nineteen twenty nine . And forever and ever , stocks had a higher dividend yield than the coupon that you would receive on bonds because stocks were riskier and nobody thought about price appreciation or total return. It was what is a stock to pay you, what is a bond to pay? It was sort of an apples to apples comparison. Right. Stock dividends were much higher because they had to compete with bonds in the past. Correct. And then it changed where yields on stocks went below the interest rate on bonds . And these old timers were telling young Peter Birdsin, listen, kid. We've seen this movie before. Anytime they get close, stocks are too expensive. They crash. And it's been, you know, seventy five years and we haven't looked back. And so do and can change and nothing is forever and ever. And I know that's like a specific thing versus a human behavior thing, but I think you have to at least be open minded to the idea that maybe this isn't the dot com bubble again, even though it's so easy to go there and you can't rule it out. I mean, certainly we'll talk about the SpaceX IPO. There are there are similarities more than more than one or two. Here's here's my thinking on this. We think of a we think of this thing this in a range of outcomes because how could you possibly be certain? But my point is you don't need to call the top . Okay? So the New York Times had this piece this week, Mega IPO Frenzy could be a harbinger of stock market bubble. Okay? Meb Fabr show this week. He had Jim Grant. AI is one of the greatest bubbles of all time. Jim Chenos was on a video yesterday. This is bigger than the dot com bubble. And to be fair, there's more context involved in these headlines. Of course, Jim Chenos was talking about the CapEx side of things, but if you talk about Jim Grant and Ray Dalio and Jim Channos, their job is to call the top on these things. That is their livelihood, essentially. This is what they do. You the royal you, the Royal Wi, don't have to call these like this. You don't have to be a pundit. You don't have to be a hedge fund manager. You don't have to call the top. I looked at this. I wrote a piece in twenty seventeen about the financial media has been calling stuff for a while now. Look at all these headlines I put in here. From august fifth, twenty seventeen, when will the tech bubble burst? May twenty sixteen is the tech bubble bursting . September twenty fifteen is Silicon Valley and another tech bubble . People have tried to call this for so so long that anyone who does quote unquote call it is going to be lucky because they timed it right and they've been calling it for twelve years. That's it. You don't have to call it . Um , Ben, the remember the show Silicon Valley ? It was early. Do you know when that debuted ? What was it twenty fourteen, maybe? That's exactly right. Oh, yelled. twenty fourteen . If ever if ever there were a they ring the bell at the top , it was a freaking show about Silicon Valley after Silicon Valley had a pretty damn good run. There was an article in the journal over the weekend by Sponsor Jake Jacob who I think does great work . He said that the headline was Assign theed M toarket Top Tell us your shoes hine boy story. So they're soliciting reader emails. I was outside of Starbucks on the morning of the IPO of SpaceX and the guy next to me was at a table with his wife and kid , and he said, Ah , I got seventy five shares. He got seventy five shares of SpaceX. He wanted two hundred and fifty shares . And my point is There are no more Shoeshine Boy stories. It's over . Everybody knows everything. Everybody likes to talk about that Joseph Kennedy story back in nineteen twenty nine where notes now. What's that? There's too many anecdotes now . Everybody knows everything . And you might hear from a friend or a family member and think, oh, wow, by the time they're asking it, ye aboutah, yeah, that's probably fair, but you don't know what anecdote they came across or who spoke to them. There's just so many different ways to get information. Everybody knows anything. There are no more shoeshine boy indicators. Now no one knew anything back then when Joe Kennedy was investing in the twenties no knew anything and no one invested in the stock market. Nobody knew anything. No one . So if you want to point to the space so if you're saying like guys, are you drunk ? All right , if you want to point to the SpaceX IPO as your mental signal to reduce AI concentration in your own portfoli o . Fine , fine . I'm not going to say that this is not a potential point in time that we can look back on as the top. Maybe we will, maybe we won't. But what's going on in SpaceX is explainable lunacy . So the IPO was on Friday. It ended up doing eighty five billion dollars in volume according to Eric Bachunis, easily a record for an IPO end of the top ten all time for any stock on any day . As of this morning, the company is basically within spinning distance of having the same market cap as Amazon. Now as we discussed last week and I'm not saying this makes sense at all. I'm just trying to explain the mechanics of how this even happens. There are just not a lot of shares out there . And so nobody who's buying today for the most part is thinking about is SpaceX worth more than Amazon? Who gives a shit? They're trying to make twenty percent in twenty four hours. And guess what? They did. Right. So there's twenty percent there's all sorts of disconnects and narratives and I get it. And yeah, the SpaceX thing is crazy. Yeah, with that much money moving, it's kind of easy to push around the price right now. Right . Easy ish for a company this big, obviously. Yeah, so like there was a stat that yesterday, SpaceX ended the most market cap ever of any company of any day ever outside of NVIDIA , which definitely makes you take , I don't know, take stock of what's going on But it's not it's not it's sort of apples to oranges a little bit. Elon did say yesterday on Twitter or on X that SpaceX could get to a trillion dollars in revenue by twenty thirty . I feel like there's some, I don't know, I'm not a lawyer, but isn't that like a material statement? Whatever. There are no are you kidding me, there's no security laws anymore. That was the past . It Doc Brown. Rodes? We're going we need don' Rtodes. There's no SEC anymore. All right, let's look at the other side of this. Taking profits. I got a call last week from someone at Marketplace saying, Hey, we've got a bunch of normal investors and we saw this headline on Bloomberg from Bank of America. It said BFA warns it's time to take profits as red flags multiply. And this isn't from some like Perma Griff. Savita is very good. She's great at what she does. She's very well respected. She's talking about how there's some bear market signposts. And there's a lot of red flags. And this guy from Marketplace said , Okay , what does it mean to take profits? For a normal investor, what does that actually mean? So that they sell their stock s, that do they sell them all? Do they sell a little bit? Then what do they do with it? Do they sit in cash? Do they put it in other investments? Like what does it mean to take profits? And I thought that was a perfectly legitimate question. It is. My read of this is very simple . If you are one of those fortunate investors that had the foresight, whatever, credit, where credit is due. I don't care. It doesn't matter. If you made money in a lot of these memory names or the semi names or the AI adjacent names and you're up eight hundred percent . Does it make sense to maybe take your money off the table? Yeah, doesn't make sense to sell twenty five whatever it is. Yeah, it probably does. You know what sort of bothers me, I'm not I'm not accusing Saveita and her team of doing this because I agree. I'm a huge fan of their work. But for the general person on the internet, the average pundit who is telling people to take profits or like, you know, sort of scolding them or whatever, hey, did you make money ? If you've been, if you've embarrassed the whole way up, who cares what you say? You have no right to tell anybody what to do about their portfolio . But do I think take profits if you've been in these names is probably prudent advice. Not probably, yeah, I do. Of course I do. Right. That so what she's saying and the big one that people took was she said the spread between the top performers of the bottom performers and tech rivals dot com bubble. So the it's the there's dispersion now. That's the Wall Street jargon term for this. There's dispersion between the top and bottom performers. And she's saying, listen, this happened in the tech bubble. This is actually bad. So it's funny because for years we worried about concentration. Now we're worried about the opposite of concentration. I personally now this is N equals one for the sample size, right ? That's one of my problems with this analysis. My thing, I personally think this is a great thing that we're seeing some dispersion in stock prices. And it's not just the MAGS seven any.m Weore talked about last week, the Mag seven is underperforming . In the fact, these memory names and these other companies are coming up. I think that's a good thing. Is that what you want to see in a bull market? The market is picking winners and losers. Yeah, that's good. I think that's just I think the degree to this dispersion . Yeah, I'm not dismissing this only in the sense that right now it really is AI and everything else. Now, I'm not saying that AI is the only thing that's winning because it's not. But if you look at the top performing names year to date , it is for the most part all AI adjacent. Yes, it is just, it's funny how the goalposts move from this AI is going to be a problem because they're going to put all this money in and nothing's going to work. And now it's like AI is the only thing that's working. Right. And so I feel like the goal posts have moved. It's funny too because this year value is beating growth. So the Vanguard Value index. Hold on just before I'm sorry before we move this, move away from this . I think a very easy way to, if you were going to dismiss this chart and provide more context that might make you feel less nervous . What this is showing is AI versus software . That's all this is showing. Yeah , because AI is at the top, this is showing the top quinti on the bott om. It's AI and it's software . So it's Micron versus Salesforce. That's all this chart is showing. Well , no, that's all that's all this chart is showing. It's the top quintile versus the bottom quintile and then the top is all the AI names. Yeah, AI is creating losers and winners. So that's what I think but again, sorry, the losers are software . Right. It's software versus AI. That's the entirety of this chart. . Right That's why it doesn't worry me that much. And it's funny . I think it's good to see it broadening out. It's not just the hyper scalers that are winning, even if this is all one big AI trade, so it's funny because value is whipping growth this year. Can I can' remtember who showed me this but Vanguard Value, which is VTV is beating Vanguard growth the EUG by I think seven or eight percent this year. Now people go, wait a minute, that's because of the memory stocks because they're so cheap, but I guess I'm just sick of people trying to do the yeah butts but caveat to this. So what these stocks are still cheap on their earnings value. So it makes them value stocks . What do you what do you want ? First it was value stock stinks they ' havecause no fundamentals. Now it's not no , these stocks have fundamentals, but it's all 'cause AI . People keep changing the narrative What do you want? I think the reality is that Micron is the biggest weight in this index. I think it's like five percent. The second biggest is like two . So yes, it's fair that Micron four percent. It's four percent. Okay . But to your point, to your point, guess what? The S and P four hundred and ninety three are outperforming the Max seven by a lot . Right . So it's not just yeah, the story is changing. It's not just the hyperscalers. It's more this is a global thing obviously Meb at the IDEA Farm had these slides from Schroders, which is really good. They had this whole global investment deck. It was like a hundred slides. I thought it was really good . So it says twenty twenty six equity gains are all about earnings. EM equities are up twenty six percent year to date. This is to the end of May and it's showing the earnings, the income and the valuations, like what in the in that remember last year when international performers were like, well, that's because the dollar . And this year, look at look at the earnings for emerging markets. It's kind of crazy. It's just dwarfing everything else obviously. And they have all these charts that show the earnings emer forging mark ets are just blowing everything out of the water, even for the US, even for Japan, even for all these other in China . This is a crazy one to me. You know what's funny about that? Because back to your point about people making excuses or whatever , like, oh , if LeBron wasn't on the caves, they wouldn't wave. If Jaylen wasn't, well, yeah, but that's what happens. So if SK Heinix and Samsung weren't an EM , the fundamentals were way different . But they are. What do you what does that even mean if this wasn't then that? They are, it is , it is . Right. And the whole point was emerging markets are just left for dead because they don't have a tech sector. And now they do. You're like, well, that's part of the A Trade. This one kind of shocked me. So in twenty twenty one, not that long ago, China was almost forty percent of the EM index. Korea and Taiwan were twelve percent to fifteen percent. Korea and Taiwan are now bigger than China. China has essentially got cut in half of the index. And Korean Taiwan have picked up the slack . This to me is the beauty of diversification , that you don't know where these winners are going to come from. In any of these, in value stocks, in emerging markets, in the US, any of this stuff, this is the beauty . You talked about Peter Bernstein before. He said something along the lines of and I'm paraphrasing. Diversification, yes, it's a risk management strategy, but it's also an aggressive strategy because sometimes you don't know where those big winners are going to come from. That's the point. If you cast a wide enough net, you get these winners and they're unexpected often. No one expected this to happen. No one . No one was saying emergency markets, that's the big winner AI. No one said that when Chad GPT came out . The question is, okay, fine. You're worried this is all one big trade , right? It's just one big, huge pot. Everything's in this pot. What do you do if you're worried about it? So last week we were talking about some of the low volatility stocks that are very underweight tech . Jason Zugwe piece about this in the journal, and he quoted Yuri and Timmer, asking about this question, like if you want to reduce your exposure to the one big trade , which is, you know, it's fair . Urian Timur from Fidelity said European stocks may not shoot the lights out , but if the S and P five hundred goes down, they will probably go down less because there's less price build up that would get undone. They can be a port in the st . So outside of ASML, the Dutch semiconductor equipment company , they are severely, severely underway tech. Yeah. They are like a backhanded compliment at Europe . It's an old economy stock market . Right . And that's diversification. That Europe could be the one that because I Europe had a good year last year and have kind of not as good a year this year, but you're right. That makes sense to me. Find those places where it's hard to find them places now, but if you're worried, that's that's it. All right. I want to talk about oil . Because markets were right again . And I think this has been a big theme this entire decade that we've been talking about . So oil is back down to eighty dollars a gallon or eighty dollars a barrel because it sounds like for the fifty sixth time we have a deal with Iran. This time is going to stick. This is the real deal this time. An oil crashed again, and it's back down to ' eighty. And the energy analysts were ripping their hair out for weeks, saying the Strait of Hormuz is closed. This is disrupting the supply chain in significant ways. Oil has should be one hundred and fifty dollars a barrel, one hundred and seventy five, two hundred dollars a barrel. It never got close to there. And I'm sure if you're an energy an alyst, I'm sure it was really hard because you're looking at all of the correct metrics and going , the markets don't make sense. Why are they not following these metrics? These metrics show oil prices should be higher. And the market said, we know this is not going to last very long. So we're not going to go to those levels. What's the point ? And the markets were right again about oil . It's pretty impressive that markets are now markets are like their own form of AI The intelligence for markets are growing over time . Think about how many things we've looked past this decade where the markets were right in the end that they never would have looked past in the previous, I don't know, twenty years ago or something. So is this saying the same thing? Because you've been saying this for a while and I think you've been right. If the average investor is getting smarter, is that the same thing as saying the market is getting smarter? Is the average investor impact in the market? Yes, bingo. Hm . There's less panic for headline events than there was in the past . Because markets move so much quicker and they just digests them faster . And I think it's something you really have to consider about how markets function now and that if there ever is this AI blow up , it's going to happen in the blink of an eye. We're going to get , I think if there is like an AI or whatever, it's going to be like down twenty twenty five percent in like three weeks. I really think the market market's going to say, all right, you know what? Let's just take our medicine. Rip the bandit off, do it now. That's what's going to happen . There's nothing you could say to remove me off of this fact that at some point, and this is not a prediction or a hot take or whatever , we will have a four year bear market. Like it's it's not just going to be up only for the rest of our entire lives. Like there will be a financial crisis at some point . The millennial generation will cause some sort of financial crisis. There will be, I don't know if you know last decade, who knows, but there will be a multiyear bear market. The fact that even that I even have to like say this as if I'm going out on a limb tells you all you need to know about where we are. This is a bull market. It's a long bull market. We haven't had a recession. We haven't had a fantra craz iest,ow all me to be so brave as to suggest that there will be their market again . Right . Listen, we're due for a pullback. Yeah, of course. We're always due for a pullback. All right, so let's talk about what SpaceX is doing to the market . Todd Stone has a chart showing the rolling sixty five day sum of money into thematic EDFs . And of course , Kathy Wood and the Arc complex in twenty twenty, the Arkmania , we might never see anything like that again. Maybe we will, maybe we won't. But that's amazing. It's a monster outlier . But especially when you consider the flows into everything these past few years . The fact that the Arc , whatever mania dwarfs that is pretty impressive. Yeah. So anyway, it's back and Todd says, you know, it's space or nuclear another theme, whatever it is. The thematic theme is absolutely surging. So we keep talking a fifty percent drawdown from those highs. Yeah, we'll get to it. We keep talking about all of potential distractions and things that want to like bump you off the horse, right? If you think about this bull market as you're riding a buck in Bonrco , it's really hard to stay on because there's been so many reasons to sell along the way. I've never been on a horse. No offense. I can't see you being a horse person. I've never been on a horse. Okay . Not up in your cabin up north. There's no horse. There's horses, but we did a horse thing a couple of years ago with the kids, just to ride around a big field and streams, and it's kind of fun. So one of the one of the buck and broncho features of this market is oh my god it's a bubble look at all this ridiculous behavior Right Write all the DJ's You have to tune them out. They're never leaving . So I say that because that was a mini bubble in twenty twenty one. It really was. Yeah, but they never left. It was self contained. They never left . Right . So the SpaceX on the launch day . I think it might have been the next day. I don't know . Levered there's there's a there's there's Levered Sharers SpaceX, both long and short and the Levered Long on six hundred and fifteen. All right, so that was that was yesterday . On Monday , the Levered Long traded two hundred and eighty two million dollars worth of shares and the Levered Short , I don't know who is, doing this, two hundred nineteen million dollars worth of shares, by far, by far, by far the largest one day volume on trading. So these leverred TFs for SpaceX are gonna have five billion dollars in like the blink of an eye. Yeah, right. They're going to have so much money roll in. All right, so Arc , SpaceX is the she owns three hundred twenty five million dollars worth of SpaceX in ARKK alone. I believe she owns them in all the other vehicles as well, but this is the biggest position . I don't know, I don't know how this works. I don't know if she got them at the IPO price. I don't know if she bought them at the open at one hundred fifty or one hundred and sixty or whatever trading. I don't know what her cost. You don't think they got some sort of allocation to the private idea. I don't know if ETFs get an allocation. I don't know if it works like that. They can, yes. They can, okay. Over the last five years , Arc is in a thirty percent drawdown . I'm sorry, not drawdown. Over the last five years, Arc has returned, ARKK has returned negative thirty percent , the Qs are up one hundred and twenty four percent . Okay, actually, these stores are all saying that yes, Arc bought SpaceX shares on the on the IPO . So maybe they didn't have the private shares The level of underperformance now it's been much better in recent years. So, you know, this is this is skewed way lower by the results of twenty twenty one where all those COVID bubble names like DocuSign and Toc and whatever they 've had a little bit of a comeback, but it's so much better. But the fact that they're funded this bad in this environment is would be shocking to people who were so into this for the innovation story. So I hate I hate like bl aming whatever because there's plenty of blame to the extent that there's blame at all to go around . If you piled into Arc in twenty twenty one, hopefully that was a learning experience. I'm sure it was . I think if there's any blame on Kathy Wood and obviously she's doing the best she can. She's not, you know, she's trying to she's trying to get it right . Missing the AI , you know, for an innovation fund, missing missing the AI tr ades. She set some very unreasonable expectations. Yeah, that was tough. You're right. The thing is, if you'd have seen these numbers from Arc, you'd have gone, oh, well, tech blew up, right? That's what happened. Tech finally blew up, and that's why Arc is down so much. You wouldn't say no, tech we had the biggest technological innovation of this century and they missed it. That's the surprising part. That's really hard. One of the features of this ball run is that every time really every time the market falls a little, fear comes back so fast . It comes back so fast. Like people get bared up so fast, which is wonderful because that's, you know, that's fuel. Like there is still a lot of disbelief. We were talking to Ankor yesterday, Encore Crawford for a talker book episode . And in conversations that she's having, I would agree with you, like, it's more when is this going to end, not what should I buy ? Yeah, yeah, right . So Jason Gebf from Sentiment Trader tweeted, man, tiny option traders really got spooked last week. One of the highest proportions of hedging activ ity in twenty five years. And the market barely fell, but to the point that we that we opened the show with or spoke about with Savita taking profits , that caused a pretty fast sell off . Micron, I don't know how much it fell from its high and whatever it's only a three day sell off . Did it fall eighteen percent, twenty percent? I don't know . But anytime there's a little dip, people just have one foot out the door . Yeah, which is like you said, the bigger the gain the quicker, the trigger on these things, right? I mean, there have to be a number of people who have just set stop losses, right? I'm up five hundred percent. I'm going to set a stop loss twenty percent lower or ten percent lower or whatever it is. People that make sent to me. People that have wrote the gains of Micron and Sandisk and Western Digital These names , I give them a lot of credit. Like you're right. Micron was down twenty percent in like three days. Was it? Okay. And again, I know I've said this on the show now five times, but I'm going to keep saying it it did happen . Micron fell thirty percent in like three weeks in March after a blow out earnings number. And we just like all of these declines, we just pretend they never happened. So your idea about people changing their minds really quickly, I think that is going to be one of the problems with this new AI trading. So Robin Hood put out a tweet this week. Egentic trading is live for all customers. Connect any AI agent through the Robinhood MCP server, fund a dedicated agentic account, let it research trade and rebalance on your term. So I watched the they had a little video that showed how it works . And I watched it. And it looked pretty cool. It was like picked ten stocks that are somehow related to the biggest private companies and then oh if the stock is down ten percent sell it or it's talk about rebalancing and it's showing these prompts putting in there. And what happens is you set the rules for AI, but then you have to sign off on it too, right? It doesn't, I think it can do it automatically for you, but a lot of times there is checks and balances. So AI is not just running rampant . And I think this is very cool. It just at the end of the day, this kind of just takes back testing to the next level . It's not really like something brand new. Backtesting has existed forever, formulaic trading has existed forever . Am I interrupting something? Sorry. Actually talking to Nick's fans. Okay . But I think the problem with this, it's really cool. I'm sure there's going to be a lot of people who can make their own, you know, rules up and it's going to be very helpful for them . But I think people are going to be constantly tinkering and changing their own rules. And the whole point of a back test is in the back test, you don't go and change it every time it doesn't work. You stick with it no matter what. So true, so true. So I just I think that's going to be hard for people to like fingers off the keyboard. I'm not changing something, even if it's not working right now. That's going to happen all the time. That's what's going to happen with this . Is that the changes are going to be constant . And AI is going to go, oh, great idea . Really? All right, you used to buy small caper stocks. Now you don't own them. Good, good for you. The market is open. Let's see what SpaceX is up to. Oh my god twelve dollars a share. So it's going to pass Amaz on and Market Cap maybe today . Again, the numbers are sort of phony baloney, but you know , this is I guess if it ends up having a huge pop and then it just comes back down to Earth a little bit and settles in where it was the IPO. It's like was the small float really worth it? I'm not saying this going to happen if it were it for the company. I don't know . Well , I think part of the reason why they did this this way is because I don't know the details in front of me. There are escalations and triggers about if the shares are up x percent , then they are allowed to unlock more shares and sell them to it . So I mean, that's a whole like that's, you know, that's part of the reason why people are absolute you're gaming the system so that you can dump more liquidity on us. But yeah, you people but are buying it. So you can't , you know, I don't know, it is what it is. Right now it was retail. Eyes wide open. Everybody, you know, they've been very transparent. You might not like it, but they've laid out the rules. And last week I spoke about how incredib ly the incredibly resilient the economy has been. And I started I started, I think, with tariffs. Like I didn't even go back to COVID, right? But Jonathan Gray had a quote that I pulled from the transcript and he actually said the exact same thing. He went back a little bit further . So COVID , of course, and that was, you know, the government helped us get through that . And part of the reason I guess why the consumer is still to a certain extent spending . But there was the Russia Ukraine invasion , which impacted us, I guess, just gas prices got through g prasices went up o,il pr ices went up, inflation went up even more because of that. The Silicon Valley Bank shock . Yep , like that was, you know, contained and but like there's just been there's just been so much. There's just racial day, all that yeah. I know we do this a lot, what I'm about to do and I'm going to keep doing it until until it no longer until it's no longer the truth because it bears repeating because it is the truth . Capital One, CEO . I would say if we didn't read any news and all we did was just really look at the data that we see in the economy and the data that we see on our portfolio , we have a really quite positive view . I think the consumer is really the strong shoulders the economy stands on. Unemployment continues to be very strong. Now I promise , as soon this turns , as soon as the CEOs of these gigantic financial companies that serve everyone, not talking about Amex, talking about Capital One , as soon as they start to say that the consumer is weakening, that spending is pulling back, I promise , I'm not cherry picking. I will share it , but the economy continues to push through. It is interesting that this company is still in like a twenty three percent drawdown. The CEO's not trying to like blame inflation or gas prices for the reason their stock prices down. They're still saying, No, things are looking good still. It wasn't too long ago then that we were did go crazy. What did? The stock went crazy and so it was in a twenty percent dropdown, but it was up a lot. So Last week , last week we got CPI data . Man, the market is moving so fast . So had you know what? Let's not forget because you know, we've bounced since , but Friday , two Fridays ago was the worst day of the year by far. Small cap tax fell six percent . And then the next week we got CPI data on Wednesday. Yeah. Okay. Not great, Bob. And the market opened down , rallied Inter Day and got slammed into the close. I think it fell one percent. And this was after three consecutive days of selling . And I said to Shark Kid, Matt, and Sean, where I was in the office with them when the I think the SPP was down one percent that day, maybe more. I said, guys , imagine if inflation came in hotter than expected because it was actually, like I said, inflation numbers came out at eight thirty. The market popped, it was not as bad as we feared. And then nothing but selling for the rest of the afternoon and closing the lows of the day and I said to them, What if inflation was hot today? And we all looked at each other and said, would the S and P have been down three percent ? The my point is that that was a week ago and we're up we're four percent higher than we were there. The narratives change so fast. So here's the thing. So inflation went from two point four percent in February to four point two percent by the end of May . And I think this it is surprising to me that the market didn't freak out, but I think this is another case of the market going, all right , just like oil markets. We're not going to freak out because we know that this is oil prices. This is, hopefully, this will come back down and not completely reverse itself. But it is kind of crazy. I was thinking about this. We talked about this for years after mortgage rates went from sub three percent to eight percent and now have settled in at six for a long, long time. Like what is the reason for the consumer being so strong? One of the big reasons is thirty five percent of all household budgets is spending on your housing, okay? It's the biggest part of everyone's household budget an aggregate . And so many people locked in not only low interest rates but low more low home prices, right? So they locked in a low monthly stipend for their housing, right? That's what gave them all this disposable income for years and years and years because it's like you're giving yourself a raise every year that you're not paying more in housing. Now, you took that raise off the table. You bought a new house, right? You trade it in for a new mortgage payment . But think about this. I was thinking about this. The inflation at four point two percent . That's I'm borrowing for free for my house at three percent on a real basis right now . It's kind of insane when you think about it that way. That's still, we talked about this for a long time, I think, but I'm just coming back to me like, oh, yes, of course. And there have been there's been people who have traded up like you, right? Who went from three to five or six or whatever and moved on and there aren't nearly as many people with three percent mortgages but that, was a that's a big piece of this. Huge . It can't be overstated. If everybody, if everybody who's locked in at three was at five point five percent, it one hundred percent , one million percent would impact consumer spending. Think about it. Think about it if you had to right size your mortgage payment for the current current housing prices right now. Right. So I'm saying. How many people couldn't afford their own house? A lot of them . I did have an inflation moment, and I said when inflation hit nine percent in twenty twenty two, people like you and me we don't get to complain about inflation. There are people who are hurting for inflation. Don't get complaint. This is not a complaint. This is just an eye opener. Filled up my boat for the first time this week And it was a lot . Way more than I have ever done before, right? I'm not a boat guy, but I'm like, what did I pay last year? Oh, it's way more money. And I asked the girl who have the people who come and fill your tank up for you She said that there've been a lot of complaints. I'm like, how have people been dealing with? Because if you know, I have a pontoon, I don't know, a thirty gallon tank or something and it cost me two hundred twenty bucks or something to fill up. It was a lot. But there's there's enormous boats, right? That take, I don't know how many gallons to fill up . And she said, yeah, there's been a lot of people blame. It's like, I think gas prices for boats went up even more than regular gas . And not slowing down spend ing one I don't know. No, yeah, right. Is that going to change my behavior? Absolutely not. Kids got a tube. All right . We better might as well mention your outfit and then I think we're going to have a moratorium on Nix conversations for the next month. Is that fair? I promise I will not say anything until next year. I give you credit, listen, you had a once in a lifetime experience. You were at the game in San Antonio , right? Which had to be awesome. I told my kids with ten minutes left in the game. The spurs are still up by twelve. I said, The Nicks are going to win this game. Either the Spur is going to win by ten or the Nicks are going to win a close one. And that's how it went. So you got to celebrate the championship in San Antonio, which is probably a good thing because New York, New York have burned down to the ground if it happened in the city, correct? So let me just let me just say a few things. And of course, I could speak for nineteen hours about the wrong we just went on. This is not an X podcast. I know most people don't give a shit, so I will spare you. You know, we talk about being wrong all the time in the market, just like all the time, that's just the nature of predicting anything. It doesn't matter if you're trying to predict what the box off ice is going to do or the weather or the stock market or sports. We're always wrong at predicting or the dot plots . I was the number one and I was I was the number one this team will never win with Jayalen Bronson and Carl Anthony Towns . And I'm only talking about from the defensive point of view, Jaylin at the top, Carl underneath . I never thought that we could win with them on defense. And I am the biggest Jaylin fan . I was never now I didn't know how good he was, but as soon as he got here, as soon as he got here, I never thought that we could not win a championship with him. He is that guy and watching him every night for the last four years . I'm not surprised. I know the rest of the world might be, but I think Nick's fans knew that he was that guy . So I've never like I wanted to trade Carl for Yannis recently . I've never been and now there was a there's something happened in this defense. I don't know what happened. Something changed. And I've never, ever, ever been more happy, obviously , to be more wrong. I'm just feeling streak of great gratefulness that I'm feeling is continued. Winning is really hard, like winning a championship is really hard. And eating eating shit for so many years . Like I went through I went on I was on NBA reference the other day I will give you credit because there's a lot of bandwagon nicks fans obviously you took me to a Charlotte game like two seasons ago and it was a meaningless regular season game and like you're an actual fan. You're not one of these fair weather people who just jumped on the bandwagon. So I'll give you credit there. I never stopped . Like I never stopped through when it started with Don Cheney after Van Gundy left through Derek Fisher and Fizzdale and Hornetcheck and Dantony and Isaiah Thomas and Larry Brown and I'm sure I'm missing a coach or two, Kurt Ramisher Williams . Oh my God , I never stopped and it was so bad . L it wasike so so, so dark . So to be eating this fruit tastes really sweet . And I'm happy for this team and the players and the organization and the fans and I don't, listen, the bandwagon fans, whatever. Like it's cool. It's unites the city. New York was by far the better story for the win. Like it was so cool to see for me not having any carry whoever won, New York was by far the better story. I'm not one of those like, oh, they're not a real fan. I mean, it's great. It's the more the merrier like the more the merrier and what Jaylen did. So since he came to the Nicks four years ago , this is where he ranks in the playoffs , second and wins , second in points per game , first in thirty point games, first in thirty five point games, first and forty point games. I can't believe that I never thought that anybody would be would replace E li is my favorite athlete of all time , but Jaylen did. He's a very likeable guy. Doesn't seem to have ego or talk to the refs all the time. Yes. I would. I'm almost done. I'm almost done. Okay . But I think I think for real sports fans that understand how much of your life, your time, your energy, your emotions you give to your team , like it's very special to win because it's just it's nothing but misery, right? There's only one team that wins every year. And most years you're not close, but some years are closer. It's nothing but misery punctuated hopefully by a few brief moments of euphoria, which I am currently living through . So I'm happy for the city. It's obviously been like some pretty dark years for for Manhattan . Obviously I hate some of the stuff that has happened with Spurs fans getting beat up and burning the buses . And it's really shitty that this happens. Listen, Manhattan's a gigantic city. There's millions of people there There's assholes everywhere. And I hate that this happens . So that makes me sad. I'm exhausted. I'm happy it's over. Like game five was weirdly in San Antonio. And by the way, the San Antonio spans were fans were great for the most part , although when you said to me like, were you interrupting something? So my friend was texting me that a father and son , like a father got hurt really bad , like brain brain bleeding on the river walk . I think I might be done going to traveling for the next. It's just like not worth it. I don't want to get I had a close call , which I won't really share, but no fault of my own. Hey, you probably feel a little nervous wearing the enemy's colors in, you know , so next year like the target, you know, people don't like New York to begin with. So I think I might be good there. Anyway, anyway, the whole thing, the whole, the whole it's been two months . It's so exhausting , just so exhausting mentally and emotionally. I can't even imagine what it's like to be an actual player a player or their family. So anyway, I'll leave it here. I'm taking Robin and the boys to the parade on Thursday . And man, it's been it's been special. And actually I will end it here. I really do appreciate all the emails and all the texts. And I know it's not easy to root for a New York sports team. Any team that's not your own ,especially one from New York, you know, where obnoxious were loud , but people that reached out and there was like an outpouring, like so, so so many texts and emails and I thought it was a likable team. I feel the love. So thank you , thank you, everybody. Yeah, and every fan base has annoying fans. Like no one, everyone has people like that. They're everywhere. And if anyone is you're exhausted, but if anyone deserves a vacation, it's your wife, not you. She's been something else. All right, so Nicole had an idea for us. She said, Hey, the last nix one is nineteen seventy three, correct? I guess they called the top in the market 'cause there was a big bear market after that. She said, Let's do an inflation thing for this. And it's funny, they put it in Nix colors for me. I had Claude ana, Women a do this for me. My little assistant, Claude . So this is prices they do nominal and real, okay ? So inflation is up six times since nineteen seventy three, which is kind of crazy to think about. That's just compounding, right? It's three and a half percent Homes are up fifteen times in that time. New cars are up twelve times. The cost of college is up twenty four times, health insurance is up fifty times, and groceries are up four times. It's kind of crazy. Groceries actually are the only big thing that has grown less than the rate of inflation since the nineteen seventies. Hmm. I guess I guess I should add claw due wages too. I wonder what the tickets were back then. Oh, that's a good guy. Five dollars, probably, ten dollars. It had to be really, really low. Because no one's paying as much either. I actually had my final tickets from nineteen ninety nine . I didn't bring them out. He sent me a picture of a playoff game . Oh, okay, round one. Yeah, I was like, what? Round one . Section one hundred and nineteen Rode. Oh, it was Rode's by then. So fourth row , it was where's the price? ninety six dollars in two thousand four . Okay, here's interesting . So wages, according to Claude, so inflation is up six times since nineteen thirty three. Wages are up eight times . But as we said, prices followed us up even more. All right, are we good with the NIX? Good. , nice opposite, by the way My son loves the chains. My son has a Michigan chain, a lion chain. That's the thing. Oh, you have the championships. I mean, I bought this for the kids obviously. I'm not a jersey guy. I've never worn really jerseys, but I bought two finals jerseys. I bought Josh and Jaylen. Yeah, you look like turtle from entrage right now. By the way, these hats are ridiculous. Like I feel like the biggest asshole wearing this. I'm never wearing this again. This is gonna be going to the shelf, but like my hydrogen twelve gallon's a twelve gallon hat. It's huge. If I just wore it, I look like an idiot. It doesn't fit in this hat, which is so silly. That is a heap. All right, let's talk about the politics of AI. So Anthropic last week said the US government studying national security authorities has issued an export control directive to spend all access to Fable five and Missiles V by any foreign national, whether inside or outside the United States. So anthropologic is starting to get regulated. Now here's the thing . Whatever happens, whatever kind of regulation politicians put on AI, it's not going to be good, probably. I don't think politicians understand this. Whatever kind of regulation they do, it's not going to be helpful. But these AI companies deserve it because all they've been spouting off is about how crazy bad things are going to get . And we can't even release this because the damage it could do. And Dario said on a few podcasts like, hey, listen, we need regulation. And they ask them, what should it be? I don't know, it's up to the government officials. Like the fact that they've not self regulated at all in many ways, like they deserve whatever's coming to them . Like they'll complain about it, but whatever happens, if you've been saying we're going to destroy fifty percent of white color jobs and like this could ruin the world because of biological weapons or something. Like you don't get to complain about whatever the government does because the government is not going to probably have the best regulations they're going to like, but so what? They've made their bed , right? Now they have to lay in it. Let's talk about AI's impact on the economy and the job market. So this is a pretty this is a pretty depressing email, but I'll share it anyway somebody said the conversation on jobs has been binary. A will add jobs or A will take jobs. That's not the way this is working out. Every company I 'm working for is hiring developers and other staff to implement AI . They are hiring me to guide them. The goal is to be leaner, not have to hire , and to replace jobs eventually. They are worried that their competition is going to be leaner because they are using more AI . They are worried AI might take their entire business so they want to be the ones using AI to take the industry over. There was a rush to implement. In the boardrooms, the conversation with everyone is about how many people can we replace . We are going to see growth of jobs and then they will be dramatically gone. I think Ben might be right in that the next recession could be when it happens. I think my job has the same problem. I have a window . I have to maximize my income, this will go away. AI will take my job. Frankly, I use AI to do my entire job now. I am just better at it the most. Ek . I don't believe this. Sorry , I don't believe these doomer takes. Good. I don't believe them. Maybe maybe in some tech firms, yes, I don't think this is the ho economy. I'm sorry. I don't believe it. Okay. That's how that's not how the world works. I think I'm with you . The journal did a long post The Future of Work in AI and they asked economists, will AI they asked me three questions. Will AI lead to net job losses or job growth across the econ omy . And it looks like most answer no change, which is a cop out. I don't know how you could answer no change . Five answer net loss, two answer net growth And. they asked based on what we are seeing now, is AI a technology more likely to replace workers or complement them . It was overwhelmingly complement. It looks like it was about two to one . And then lastly, how much will AI change the way companies hire and develop talent over the next five years ? Major impact and some impact were ne bckat and neck and minimal impact too. Justin Wolfers with a hot teak. Minimal impact. Okay. I pulled two quotes that I thought were very interesting . David Deming, David is the dean at Harvard College and Professor at Harvard University . He said that depends on their outside option , I guess, in terms of like job switching. Telephone and switchboard operators were immediately displaced by mechanical switching technology. That job essentially disappeared overnight . But the young women who would have become telephone operators became stenographers, administrative assistants, and waitresses instead , this shows the importance of flexibility in education and training . This is the coudigra. I could have just skipped to this quote. People are the ultimate general purpose technology. I like it. That's a good quote. One more from Joshua Ganz, he's a professor at the University of Toronto's Rotten School of Management. He said they will be reemployed in other things. It is only when technological change takes out an industry in a particular region and people don't move that we see major technological unemployment and wage reductions. So that's like factories going overseas. Correct. This is the fun part about these type of innovative cycles though, is that just no one knows. It's everyone is guessing and extrapolating and making expectations and yes . That's right. No one knows. That's right. Ben, we got a decent report on the residential real estate market. It's been a while. Existing home sales in the US accelerate to their fastest pace of the year in May , with contract closings rising to an annualized rate of four point one seven million . The median sales price of an existing home climbed one point three percent from a year ago to four point two nine thousand. All right, here' heres's one of the takeaways I have from this. So look at this median sale price from Redfin shows lines by year. We're at Alton Highs. I am starting to get bullish on residential estate stocks. It might be early, this might be this might age horribly been bouncing considerably, right? The last month or so. So there's been yeah, there's been a bounce. So it could be a decad bounce and I might just be, I might just be, you know, giving the stock market in the short term too much credit. But my thesis is this , I think that even though home affordability quantitatively hasn't changed . It's still horrific . I think there is merger rates have gone up this year. I think there is a realization it's been gradual. It's been like a multiyear process that okay this is just what houses cost now . Yeah . Here's the thing though. Look at the next chart I just put in here for that shows US existing home sales and you can see the minor min,or upturn? Yeah, it's it's it's it's still way low and it's good that it's beating expectations, but let's be honest, this is still far below average and far below where you'd think things should be given the amount of young people in the economy ? Well, that's the thing. We haven't I mean, the demographic part of it, there are still this is the largest cohort of the nation in terms of age , and they need to buy a house. True . All right , real quickly, you talked last week about the rule of fifty five. The Wall Street Journal had an article this week The retirement tax break that most people overlook and they talk about the rule of fifty five, how you can if you leave your employer the year you turn fifty five or older, you can pull money from a four K with penalty free to the court . And I said, no one knows about this. And they said in a recent Wall Street Journal personal finance quiz more than eighty percent of readers got a question wrong about their earliest age you can, make penalty f ree for one K withdrawals. And so yeah, no one knows about this. Which the retirement system is so jacked up in this country because we have so many different accounts. We have IRAs, Roth IRAs, four hundred one k, Roth four hundred one K , five twenty nine , HSAs, Sep IRAs , solo four hundred one K's, it's too much. And some people get more ability to put money in than others, so there should just be one big pot of money. Everyone has the same limit, and it comes for everything. Your five hundred twenty nine, your HSA, your retirement, it's all one bucket. That's what it should be. Is that gonna happen? No. No All right, Pen, I want to play something for the audience. I love this. We were in the studio , you were in the studio reading some you were doing some promotion for the book for your book Risk Award reward. That's what you got a comp help me make social media clips that were promoting the book. And we got some bloopers that I thought were just adorable, so I want to play 'em. I love this. This would be a funny social of just Ben's out to us . Take the financial media one out of this. I don't piss people off . Take two . The stock market. It's volatile. It's a roller coaster. Shut up Take three . I go into these details even more in my new book, Risk and Reward , Out Now where you find your books . Now everywhere. I detail all this and more in my new book, Risk and Reward , Out Now wherever you find your books. I was gonna do the thing. Just same in my new book. Okay . No. Yes, they say out now everywhere. No, available. Oh, there you go. I detail this and more in my new book Risk and Reward. It's available now. Anyway, find books. All right . More on this and more and more and more on this . More on this in my new book Risk and Reward Available Now. I won't do it . Tons more charts. Nope , way more charts in my book, Risk and Re available now. If you read this book, you can earn more , spend more, save more. Everybody was like just an odd . Yeah . All right, that was awesome. You know, by the compound team. It's really hard . I did some of that the other day for some of that we're recording. It's really hard. It's hard to think. It's so it's awkward. It's difficult. It's funny when you hear a podcast , it's it's been so edited in many ways and the um and odds are taken out and you don't realize that no one talks as clean as people can be made to sound, right? Even this podcast That's true. We're not that good. All right. Elon is the first trillionaire chart kin made a chart showing Larry Page , the command network of Larry Page, chef Bazos, Mark Zuckerberg, Jensen Wang, Warren Buffett, and Rob Walton is that of Elon Musk . And the Wall Street Journal blessed them. They did this great post post where Ben Cohen and Andrew Malika picture aligned with one million dollars on the left and a trillion dollars on the right, where would you place one billion in credit to me , I was better than most, but still not even close . So it's basically all the way to the left . One million dollars and a billion dollars compared to a trillion dollars are basically the same thing. So here's some context. And I know you scout at this ben, but we need it. If we stack dollar bills, it goes to the moon. Here we go. All right, a million seconds ago was about two weeks ago . A billion seconds ago was in nineteen ninety four when pulp fiction was about to open in theaters . A trillion seconds was back in the ice age . Here's one more One more . A billion pennies . A billion pennies takes you from New York to Cape Canafrel in Florida . Okay a trillion pennies takes you to the Moon and back twice . So moon, back , moon, back . That's a trillion pennies. So Elon Musk, he can afford a house . So so people, politicians in particular are very upset the good news is the discourse around this is very reasonable both sides. So I will try and offer a reasonable take . Poverty is horrendous . And I think most reasonable people if there was a way to snap your fingers and make the world a more fair place with less horrific hunger and problems , of course, everybody would like to do that . And so you vilify, the politicians vilify somebody with this amount of wealth, it's beyond the pale. Who needs this much wealth ? Let's redistribute it, let's tax them, let's whatever, whatever, whatever. Of course I understand the sentiment behind that. I don't agree with it economically . I don't think it's that simple, but I understand where it's coming from. It is mostly coming from a decent place . The part that is never discussed is that SpaceX, the IPO, it created so much wealth . Yes , the most of it went to the creator. That's the way the system works. A lot of it went to the investors for taking the risk. That's the way the system works. They created four thousand four hundred millionaires, according to the New York Times. And I don't know a better way to lift as many boats as possible other than the capitalist system that we have . And are there maybe things that we can do? I don't know, that's not for me to figure out . But a lot of people, a lot of people benefited in life changing ways . And I think this should be celebrated , not torn down . Well, we're never going to solve this one . I don't think wealth inequality is never getting solved and we're never going it seems like we're just can't tax rich people more. So I think this is just something people can argue about forever. I think that's probably right. Okay, let's talk about recommendations. I have one for you. Have you watched Widows Bay on Apple ? Yes . Okay . So if you watch the first episode, this is Matthew Rise, who you said, a great actor. Was it in the Clare Danes on Netflix? I love this guy. I love the Americans. I think it's one of the most un heralded shows of this century. I loved it. I love that guy. And I watched the first episode and I'm like, What is this show? It's like kind of mysterious, but it's also kind of lighthearted . And then it takes a turn and it gets dark and it's kind of, I guess it's Stephen King, would you say? Yeah. Oh yeah, yeah, that's right. That's right. Yep. It's kind of like Steven King ish show. And usually we talk about it. I'm not a horror person, not usually my thing. I really like this show. My wife, she's like you, she can't look if. there L'ikes a she knowss there' a jump scare coming, she looks away and says, tell me what's happening. She's like you, I for me, like I said, it does nothing for me. So I just watch. I'm like, oh, it's a scary clown or whatever. It's a crazy old lady with long fingernails . But I really am enjoying this show. And I'm surprised that I am. Thoughts for you because you watch horror all the time. So is it too much for you? Too much. No, this to me this is, I understand it's a horror genre, but this is not a scary show, I don't think. It's not like it's like a suspensable show. Yeah, it's something there's some scariers but I wouldn't say it's like, it's like light hearted. It's like it's comedy horror for Lucky Better. Yeah, it's right. It does have some light hearted parts. Like again, I think the first episode of the show , you'd never expect where it's going to go the next four or five. We're halfway through or so. I know I said this about a lot of the shows that I enjoy. I really don't need a season two of this. I think they already agreed to one. Okay, I agree .. Right It seems like a one get it all out there. But yeah, no, I'm enjoying it. And an apple, man, Apple is Apple has found their groove . I'm watching Cape Fear I didn't know if I wanted to watch that just because I've seen the movie I'm like, Do I really need it? I don't know. It's good . Okay. It's ridiculous. It's Amy Adams , Patrick Wilson and Javier Berd en produc,ed , executive produced by Spielberg and Scorsese , who famously swapped movies. It was the Cape Fear for Schindler's La Swap, which man, the alternate scenario of that is bizarre to think about. I guess my whole thinking is I have a hard time watching movies where things bad things just keep happening. Oh, this is ominous. Yeah, this is this is pretty dark. So maybe not for you. But I revel in the darkness. I watched on the flight is this thing on so I watched the first fifteen minutes, fell asleep , probably missed forty minutes of it, which is I don't think I've ever done this before. I just watched the rest of it . And I don't know if I could comment on a movie in which I missed a forty minute chunk, but it took itself way too seriously. That's the problem. For a movie about a comedian took itself too seriously. It definitely wasn't a comedy at all. But how can you have a show about a stand up comedian that's not funny. Well, I mean , I'm a soccer for movies about divorce . So I thought it was okay. Okay. It's an airplane movie at best. Yeah, I think that's why I watch it. All right, I rewatched a classic that I haven't seen in a long time and this is a movie that could never be made today in a million years because no one would believe it. It's called Dave with Kevin Klein, where he is a lookalike with the president and then the president gets sick and he becomes the president . And I haven't seen it forever. It's one of my favorite. I think the nineties has the nineties is just the best in terms of White House stuff, right? Was that Sigorney Weaver? So it's Kevin the cast, I couldn't believe how good the cast was. I forgot about it Kevin Klein, Sagorney Weaver, Frank Langella , Ving Raymes, Ben Kingsley, Charles Groden, Laura Linney, Bonnie Hunt. Whoa. It was just like a murderer's row of oh my gosh, that person and that person and that person. And it's such a sweet look at like the White House in politics that could never be made today because you'd go no, that's but you could make that movie in the nineties because politics were different. And I just I don't know what it is. That in the American President is like neck and neck for the best presidential movies ever made. And they're both made in the nineties. Therefore it's both of them . Get off my plane Anyway, I can't remember what's on Amazon or something, but I love that movie. Aged perfectly and horribly. All right , congrats to you. Thanks for coming to the show today looking like a guy from B theronx . Is that fair to say? Yeah, I feel completely I mean, yes, I'm wearing this outfit ironically. I understand I look like a complete buffoon. No, you can't you have to. You have to buy all the championship stuff. You're keeping everyone in business right now. We are next gear purchases