Afternoon podcast 9-9-26

0:00Welcome to the afternoon Rob Blackshow podcast a guaranteed human podcast which can also be heard on AM-1220KDOW weekdays at 5 p.m. and on 860 a.m. the answer week nights at 11 p.m. The views and opinions expressed in the program are not necessarily those of this radio station or its sponsors and should not be construed as legal tax or investment advice You should always consult the appropriate advisor before making any financial decision all rights reserved Now, new focus on wealth, new focus on wealth, get a new focus on personal finance, wealth management, wall street and the economy Now, Rob Black Taking a look at Wall Street today we see the S&P 500 down 1.5% of 1% the Dow down 3 quarters of 1% The Nasdaq down 2 thirds of 1% the Russell 2000 uh oh down 1.3%

1:00The Russell's telling me interest rates probably crept up gold up slightly bitcoin down slightly Bitcoin's in it 78,261 crude oil up uh that's the problem up 4% today to 96 dollars and 70 cents of barrel Nah, it's not point now let's take a look at the treasuries how did my boys do today the 10 year 4.83 That's the start of a danger area for equities saying a 5% correction is starting to look more likely maybe a 10% correction There'll be a shift as investors say you know what I've got a lot of money in the S&P 500 I've got a lot of money in risk stocks I got a lot of money in growth and I see safety right there I can get to 10 year treasury 4.83 if the Federal Reserve does lower interest rates in the near term future I can come back to stocks later I think that's the general idea here. I would not read a lot into it later in the show I'm going to talk about

2:07Apple a lot about Apple's new product and I want you to listen at segment and think do I want this product Because I will tell you right out of the gate the foldable phone called the duo is something I will buy I just want a slightly bigger screen, but I don't want an iPad Something about sleeping with a foldable phone that's kind of a small iPad versus sleeping with an iPad We're like where did my oh there's my iPad it's like you can't hide it from it, you know Meadow is up 6.5% day wall street light the new AI agent angle They're starting to get their focus in on what we want to hear as investors Do Olingo roast apples iPhone duo Because they have the name duo in their name I just think that's Kind of stupid That's where duo lingers should just keep their mouth shut and So duo lingered tweeted they call it the iPhone what oh my god. Oh my god my SEO my SEO

3:13Do we need that kind of stock if I own duo lingers on right there on the spot So the major average is extended their holiday short and weak decline boo Crude oil remain the top primary headwind with the usc run conflict Continuing to escalate Excuse me Apparently the United States struck several Iranian oil tankers in response to an attack on one of its warships Iran subsequently warned that it would escalate its counter strikes as US tax continue The events in crude oil provided a considerable boost the energy sector up 1.1 percent Which stood alone in positive territory amongst the 11 SB 500 sector stack Higher treasure yields at it another layer of pressure after the treasury department announced plans to buy back $6 billion dollars long term debt

4:17It's not a lot The announcement sparked a sharp increase in rates during the late morning and helped to push stocks their session lows Scott Bessett He's not coming across as credible to me With how he's approaching the bond market He's trying to manipulate something that shouldn't be manipulated Washington's made things worse The whole idea of You think you're bigger than the bond market. It's one of the craziest that I've always said the bond market smart It'll figure itself out almost in real time You will tell you where the concerns are in the US economy But Casey's general store there a gas station that sells pizza mmm Pizza in my belly And for most Americans pizza is a low cost high calorie high carbs Me all that you can feed four people for roughly 20 bucks or less Good luck doing that elsewhere without eating ramen noodles

5:20It's Casey's general was down 14.2 percent today Finishing as the weakest S&P 500 component the company exceeded earnings per share and revenue expectations But the reaction reflected some disappointment surrounding it It's inside operations and I'll look through a banner of the year So I did not pull the trigger today on Casey's But this is exactly something that I would be interested in I like high quality namey that pull back from their 52-week highs Or the 200-day moving averages another way of saying that in a similar vein On Friday's big shoe as Ed McMahon calls it I'm gonna go over on my strategy segment about What Charlie Munger taught me even though I didn't know it was he who taught me About buying Companies that are great. I always said it with great total addressable markets 20% from their highs I'm gonna do a whole strategy piece on it So because Casey's I was an offended when I looked at the numbers. I have not looked at them very long

6:26And I don't play that game of instant reaction I buy But maybe tomorrow or the next day Inside same store sales increased 3.2 percent. It was gasoline and gasoline dropped a lot in the last quarter Even though it's back up now, so should we assume do you see where I'm going at Particular strength in pizzas while grocery and general merchandise increased 2.7 percent Margin inside margin expanded 30 basis points Overall results were solid but the composition of the beat was less compelling than in the fourth quarter Encouragingly August volumes remain consistent with first quarter and within Casey general store annual guidance ranges Suggested underlying demand has remained healthy management is maintaining its practice of waiting until the second quarter to update its annual guidance I like that I'm not saying now is the time to buy but now is the time to do homework in some of your favorite names

7:30Apple briefly moved in the positive territory today during the afternoon following the company's product event before ultimately finishing the session lower Apple introduced iPhone duo more on that later in the show Meta platforms was up 6.55 percent talked about that People are starting to figure out they're starting to articulate an AI strategy The debut of their muse personal AI agent Keep in mind with billions of users They can make money Given way their AI in supplementing with ads They can make money by using their AI to make their ads more prominent and more clicks They can make AI win for them by leasing out any compute power that they have extra to others Which could have returned on investment as early as two years maybe one if they're aggressive So all that money they're spending they can turn around and lease it out

8:32But again a lot of questions you'd to date the thousand nine percent the SP 500 up 11.6 percent That's a great return That's a people mid cap for 112.5 the Nasdaq 13 percent the Russell 2017.7 percent I'm liking what I'm seeing Elsewhere motor role solutions that has boosted their share repurchase authorization by two billion I didn't even know motor role was important anymore I know they use them now organic quite minutes. I'm kind of being facetious, but my point being is like really Not for me There's an interesting disconnect between what's happening the stock market right now corporate America is putting up exceptional numbers, but stocks aren't getting the full credit for it revenue rose for the SP 500 16 percent year over year earnings have are approaching 52 percent increase It exclude those one-time gains from selling private companies as a publicly traded company

9:33You're still talking about our integrated with 32 percent profit margins your near record highs and 86 percent of companies have beaten earnings expectations The thought is is this as good as it gets Otherwise you buy the schnikes the snot out of this market you say thank you The benefits are spreading me on technology for AI AI spending is boosting semiconductors utilities industrial construction logistics Simulator sales are up 66 percent year over year while technology revenue is growing about 21 percent I have a vent why I'm going to talk about what I'm doing in my portfolio this weekend saturday in Lafayette at the library The dawn tats in library easy to park. I'm gonna get there probably around nine. It's gonna go from 10 to noon I'll probably stay till one all questions will be answered If you show up We're gonna give you a free preliminary reply on after the event Which we'll show you what you're doing right and we're wrong on your way to retirement Sign up for this event the last one in the east bay this year. Maybe ever is a chance At roblachshow.com that's roblachshow.com stick with me

10:41These days retirement planning is more complicated than ever So set aside Saturday morning September 12 and get ready to learn some strategies for wealth preservation and retirement planning from rob black Ryan agnossio and Julie channel rork This event will focus on retirement income tax strategies estate planning alternatives and funding retirement If you're at or near retirement with at least 500k and investable assets this seminar is for you You'll learn how to transition your portfolio from the accumulation phase to the income phase Which accounts to draw from first how to protect your estate from long-term care costs and much more Learn how to invest during inflation and interest rate moves Social security strategies and managing IRAs and 401k's in retirement Rob black will share market happenings and trends that Saturday September 12th 10 to noon at the Don Tatson Community Library in Lafayette Space is limited so sign up today at roblachshow.com that's robblackshow.com Investments not if the IC and shared best performance does not guarantee future results not on after to sell or as a listentation to buy any security member Finra s up you see your listening to new focus on wealth joining me now

11:44Patrick go hair from briefing.com a reliable source of domestic and international news. It can use I start my day Every day on investing with page one in Patrick in my week with you as well. Mr. O'Hare Give us an update on what you're seeing in the current market action Good morning Rob. I have a market that's fixated on the macro picture right now more so than the individual company news And for good reason you have oil prices that are rising again You have interest rates that are Remaining elevated raising some Concerns and all of they might be implying in terms of Equation trends and what the Fed might do about it and and what it could retain or tend for stock market valuation So I think we have a market right now is just going to a bit of a consolidated pattern Recognizing that these could be potential spoilers to the full market rally oil prices keep going up and it straight keep following along As the Fed gets forced into raising rates to try to keep inflation and check

12:46This is a time of the year. We're in an election cycle or in midterms Do you pay more attention to politics or do you just kind of let it happen because it can affect how you're going to come to work in the next three to six months We can't just let it happen and then we will take accounts for you know what does happen and how that could ultimately Impact to behavior of the stock market have a what a few more months maybe is the less than two months before those mid-term elections and Think the market has an idea of how those are going to play out already But you never know until and so it's just another factor that hanging out there is a little bit of a source of uncertainty the key to this market Operating in its guarded state after having done so well earlier in the year and why it's contracting sideways for the better part of them That last three months or so So what do you keep it an eye on? I know that this week we have producer price index. We have the consumer price index We have the Michigan consumer sentiment. So we're trying to Divide

13:47Is the economy strong enough and is there too much inflation? We have shifted away from earnings What are you watching more than less or if you could rank what you see out there? The industry is who the basically number one on the list I think I think I kind of take everything into account here right in terms of what we're looking at with respect to CPI trends PPI trends What's going on with oil prices? What's going on with concerns about the national debt and the deficit That's all factored in there and and higher industry rates raised the cost of financing which could potentially be a growth impediment Which then could become a problem for earnings growth and so you do have to keep an eye on Not only the level of interest rates but the pace at which they're changing And and I think that the markets on guard here for some type of either breakout and interest rates It could take a 10 year note yield up to 5% or getting some type of relief that I guess Lovers the temperature a bit if you will on terms of what the industry trends has been and being very watchful of that key component

14:51What are you looking for from the consumer? What's I'm kind of surprised at we consumer just keeps marching ahead I get the whole AI and I get the whole AI versus inflation It seems to be a big fight on Wall Street right now But I kind of keep forgetting the retail consumers out there and we continue to spend and you watch the credit go up a little bit But it seems to be bending not breaking on the US consumer any thoughts on what's carrying this market Right. Yeah, it's an interesting condition if you will as a relate consumer here But you know, you still have a pretty low unemployment rate historically speaking and while there are certainly price pressures out there all around And that's just gas prices but in fair number of products and services I consumer with the point I think you highlighted before Rob on your show that consumers who are gainfully employed are going to continue to spend They might be a little bit more cognitive of their discretionary spending as they face some of these added pricing pressures, but the data bears out that they are continuing to spend and that's been an important factor here for the overall economy

16:00But you know, I guess one of the maybe the interesting Divertances here is that you have a consumer discretionary sector is the Only sector that's down year to date in yes and p500 and We still have anecdotal evidence and actual evidence that suggests that there is this ongoing k-shaped economy factor where lower the middle income consumers are definitely feeling more strained and Perspective their budget than of course fire income consumer is who's got not only positions in the equity market but might own their home and are sitting a lot of equity that helps Drive the wealth effect that keeps these consumers spending numbers looking pretty good at the headline level But but there's definitely signs that spending by the lower the middle income cohort is just not as robust as maybe We would all hope it would be I think there's a little bit of that this morning When Casey general is afforded their results and there was perhaps not the same kind of strength and the inside Fates door sales

17:01Number that analyst has come to expect from that company So here's a kind of a big picture question for you. I deal with a lot of retail investors And gold is had a funky year. It's up 1.4 percent or S a p500's up 12 percent. So that's a pretty good year and day But I keep coming back to gold because the national debts at 40 trillion. We know it's gonna go higher or that's my assumption I don't want to put words in your mouth Why not own some gold in your portfolio? It seems like a no-brainer as a hedge against inflation of the weaker dollar Do you do approach that because I I tend not to oh I tend to go I want my growth stocks So they tend to look away from gold What are your thoughts on gold right now? Was a diversifier and it's there for the taking that's not one of those classic classes that you're gonna Significantly overweight, but I have a small portion in your investment portfolio to For these reasons you you highlight and might you can make a case if the dollar has been overvalued

18:04Given the strength we've seen in the equity market here and and that you get a good correction US marketing Girl'sfully way on the dollar help drive up and play our gold prices and you benefit that regard too But I think we did have a period there where gold is tremendously well And it's been retracing some of that rally that we've seen but But I don't think this is a market in general that's Going to give up on gold given all of the things that are going on respected not only the deficit here, but all of their stuff didn't take problems that are brewing around the world So all in this conversation day was I typically had in the conversation is there anything that you're working on that you think would be important for us to know Anything that we didn't get to that you kind of are itching to tell us any thoughts Right we test a little bit on that consumer price index right your listeners are probably That heard that it's kind of going to be all end-all report So to speak for the market belief in terms of what the Fed might do at its definitely on cnd on September 15th and 16

19:08Seems to be a lot riding on this one particular number is out on Friday And it would be the theory is that if you get a cp i report that's a little bit warmer than expected Then you're going to see the fed raise rates and if you get something of this cooler than expected that the Fed would then have a Casted to do nothing and just to remain on hold It will be a market moving report one way or another and so we need to keep our eye on that and just as we discussed earlier in the interview How that's going to shape the direction of interest rates and policy rates as well Both will be important factors as a relates to stock market outlook Thanks very much. It's past your go hair a reliable source of domestic and international needs you can use always a good insight I've been tied towards that organization Not with a financial commitment just great content that you can check it out yourself at briefing.com That's briefing.com. You got to use good information. You're going to be a common good investor I'm Rob Black talking all things financial. I'll tell you a break here. I'll be right back

20:15Now back to new focus on well apple officially introduced its iPhone 18 pro and pro max They've been officially introduced its two new phones keep mine. They're keeping the lower and specs and lower in price until the new year You're separating their releases now to get the people who want the high margin high cost phone first Their dedication manufacturing it then they switch the manufacturing to the low end you get the idea So John turn has kicked off the launch event on Wednesday by announcing the new devices the iPhone 18 pro and the iPhone 18 pro max The new pro models come in four color silver black glacier blue and burgundy Apple shares traded slightly lower today, but in after market they know okay The iPhone remains the center of Apple's ecosystem and one of the companies most important sources are revenue For consumers each new phone creates an opportunity to upgrade to better cameras Performance and AI capabilities Foreign investors the bigger question is whether Apple can convince enough customers to upgrade to support

21:21The iPhone growth despite the high prices AI powered Siri made its debut today in the Apple hardware event launch I'm sorry Dave. I'm afraid I can't do that Apple confirmed that it's long-weighted artificial intelligence powered Siri will be available in beta this month AI Siri will eventually only be available in English Initially the AI power Siri will be available in French pennies Korean Portuguese Spanish and octahobar Siri AI won't be available in the EU or China And just hope that it works Apple also said that some features will have usage limits because they rely on powerful Server models increased access will be available with most iCloud plus plans. So right there they slipped in You know if you want AI to take over your phone We're gonna probably charge you for it if it's more intensive than Skeleton haircut if there's anything you need help with just let me know Siri said

22:21It could be one of the apples biggest opportunities to make AI useful To the average consumer investors have been waiting for Apple to demonstrate that it's enormous installed base of iPhone users can translate into a meaningful AI advantage My kid's been tooling around on the Siri AI and he says it's great And I give you that perspective because I'm an old white guy He is a young white guy We are an Apple family ecosystem. So it is important see will he stick or will he not? If customers become more dependent on Siri and Apple intelligence that could encourage upgrades increase iCloud subscriptions and strengthen Apple's ecosystem Apple announced an update to the AI neural engine doubling in size Apple's dedication doing as much AI on its devices as possible was on full display today During its presentation the new a20 pro chip which powers the company's new iPhone 18 and iPhone 18 pro max

23:22Apple's been trying to move as much processing to iPhones as possible keeping customer data out of the cloud To this end way back in 2017 Apple introduced its neural engine a part of its iPhone chip that could do AI tasks about killing the battery The neural engine has only grown in size and important since then and this year Apple is doubling its size from last year's a19 pro chip to 32 cores Apple's branch is long been focused on security and privacy and the neural engine should help its transition that focus into that AI age This is another way for Apple to differentiate itself in the AI race while potentially reducing the amount of AI processing that has to happen on expensive cloud infrastructure The iPhone 18 did get a hundred dollar price increase some people were expecting a little bit more The iPhone 18 starts now at 1199 dollars while the iPhone 18 pro max starts at 1299 Both prices are a hundred dollars more than their predecessors

24:24That comes on top of the soaring memory prices that Apple is trying to absorb Apple it previously raised prices on some of its products excluding the iPhone to offset component cost headwind This makes the Apple upgrade program that's now a leasing program even more attractive to some Couple weeks ago Apple upgraded announced its leasing program provided by by now pay later company Clark not and they're offering 12 and 24 month leasing options for iPhone's with prices starting at 1799 per month Higher prices obviously a double edged soren to the economics Get more revenue per device, but consumers may hold on their phones longer If upgrades become too expensive investors will be watching whether Apple can maintain demand and margin Despite higher component cost We got some new air pods and I'm gonna tell you so far Nothing's blowing me away

25:25Apple's latest air pods will come with a price cut Interesting at least for its fullest featured version the air pod 5s available for pre-order today going to be in stores in nine days Starting at 129 dollars with noise cancellation included their $50 less than the previous comparable generation Anywhere pods come with the ability to use hands-free interaction with Apple intelligence Apple also says they've improved their battery life Air pods Are another piece of Apple strategy to keep consumers inside a C-car system Having another device through which to deliver Apple intelligence It's a big partner story going forward For consumers this is another expensive upgrade cycle with more AI Better hardware and a growing emphasis on AI directly on the device Nothing announced day up to this point in the conversation

26:25Has been groundbreaking If you can make AI useful though Private and easy to use across hundreds of millions of existing devices Apple may be able to monetize AI through a iPhone upgrades iCloud subscriptions and its broader ecosystem Now that's when John Turner Scott is Steve Jobs moment for the first time But wait There's one more thing So far not impressed But today Apple introduced the highly anticipated iPhone duo $1999 Available October 23rd so well over a month from today The device represents the largest physical change to Apple's flagship smartphone since the iPhone launched in 2007 Back when we were all three years old It's called the iPhone duo You thought it could be called that iPhone fold The duo folds onto itself with a hinge mechanism when closed it's about 80

27:30It's about the size of the passport When open the display expands to 7.6 inches about 80% larger than the iPhone 18 pro It essentially turns the iPhone into a small iPad that can fit in your pocket Apple says it is also the thinnest iPhone yet which is notable after the company introduced its ultra thin iPhone air last year Touch ID is also back replacing face ID allowing users to unlock advice whether it's opened or closed iPhone duo will use Apple's new a20 chip Announced earlier today along with Apple's new C2 modem further reducing the company's reliance on Qualcomm Bye bye Qualcomm It's good that Qualcomm had a relationship yesterday announced the Amazon because it's kind of a distraction The obvious question is whether consumers will actually pay $2000 plus for the starting price For an iPhone What's going to do to the iPads?

28:30Obviously a little bit of cannibalism Which there has to be a lovely and delicious cannibalism joke somewhere out there if anyone wants to draw my email robb to robblock.com Apple is essentially creating a new premium category above the traditional iPhone With the duo Apple analyst gene monster of deep water asset management said some consumers may actually choose the $1999 duo over the less expensive iPhone 18 because the new form factor And the appeal of having something meaningfully different I get a lunch every day Monday through Thursday For basically a 45 minute protein max And sometimes a month on and I'll be quite honest people will talk to me if I get the duo and I know only people talking to me Although if you do come to an event this weekend In law, if yet, I would love to talk to you Just what I'm having lunch. Let me lunch

29:32Apple is essentially creating a new premium category. So I don't think anything here is damaging because of that It's not like the headset that they released that There's no demand for but that was no demand on a low end no demand on the high end They're still getting a lot of the technology that they're putting into that headset into You know new devices, but We're not ready for headset For consumers the big question is do you want an iPhone that opens into a mini tablet battling off to spend $1999 Can Apple use the duo to reignite iPhone growth To increase the average selling price to create an entirely new premium product category Oh for the record my big concern was that the cameras were going to be crap on the new duo They're they're they're they got telescopic. They got everything I need And the fact that it's 80% bigger and most evenings I wake up For but I want to get out of bed at 430 so I do a lot of reen

30:35Uh from the sidelines in bed. Well, I'm kind of trying to figure out what to do on research that day I'll probably get one but probably not till after Christmas The little enthusiasm go down Apple shares were a little changed just slightly higher following the presentation Apple Apple waited a long time to enter the foldable market now investors get to see whether waiting meant Apple was late the party Or simply waited until the party was worth attending Keep in mind that this morning there was an analyst who resigned from anthropic and he basically said half of humanity goes extinct and the chances of human extinction fears are rising And the markets only went down a scotch So a big time insider Kind of scared the markets out of the morning

31:38And the markets go down fractions I think that's worthy of note And when I say fractions one half of 1% on the NASDAQ 60 basis points is not a lot Okay So further looking at some news of the day Michael Dell is now the number two person on Forbes billionaire list for the first time passing Larry page Gene Munster said the new foldable iPhone duo is sick no scene ultra thin 50% larger screen than the pro max My take they're going to sell more than I thought before seeing it I was thinking it would account for 5% of iPhone revenue in 2027 No, I think it's going to be 10% The issue is it the price we don't have it yet But now that we know it's around 2000 He thinks it's going to do well You can find me online at Rob Black show come to an event this weekend Saturday in Lafayette at the library 10 to noon. It's a wealth preservation retirement planning event my last event maybe ever on the east bay But definitely for the year Sign up at roblachshow.com the trouble at show

32:40com for more details This is new focus on well. I saw yesterday that Nike got kicked out of the NASDAQ 100 and this was a legendary stock It was an iconic stock In the 1990s. It was one of the very first stocks. I ever wanted to own Because they were Nike And my running shoes of choice are Nike's you know what my running shoes a bit of choice been for the last 35 40 years Nike I don't do hocus I don't do new bottles I do Nike's now seeing them at a 52-week low Multi-year low whatever you want to say It stinks because they're a great company But they don't work for my kids Neither one of my kids Say dad I got to get the new Nike's Can we stay up all night and go to the store and pick us up Now they're not going to go out of business. They're one of the top 12

33:41retail apparel Foot companies in the world for making shoes That's not going to go away There's still going to be a player so the question is do you trade it or do you wait for something for it to show that they're back American Eagle put city swinging in jeans made a cute pun about having great jeans And the stock ripped like a mean coin in a mall That Was the entire trade on American Eagle last year Nike doesn't need a vision Nike needs a transition year nope Nike needs 30 seconds of Sydney Sweeney is what Nike needs They need a bad pun tied towards the swoosh And every man in America aged 25 to 50 Who owns a Robin Hood account They will personally rebuild the footlocker wall with their hands They will get a pair of Nike's and thinking that they have play with beautiful women

34:41Sydney Sweeney will pull in I know you're saying you're kidding aren't you I am a little bit But I am so not interested in Nike other than it's got an amazing dividend of over 4% It's a dividend of Christa crats are not going to knock that that problem round To me, it's like buying a stressed piece of debt This is Nike we're talking about though the swoosh Michael Jordan air Jordan's just do it The stock has been crushed falling roughly 76 plus percent since 2021 peak And Nike is in 2021 peak was a time where we're like oh, we're now we're gonna go to work again So we better get some athletes or clothes that we can do our zoom calls in and then go for a quick run When no one's around us, so we get to run away from the pandemic Nike Nike's fighting different battle and they were a decade ago Hocus on a didos and a long list of newer brands have taken shelf space

35:43Nike once was an unstoppable giant Sydney Sweeney Sydney Sweeney Hear me out American ankle put Sydney Sweeney in jeans and turned the whole thing into a cultural event Sydney Sweeney has great jeans when viral The American Eagles stock jumped sharply and the company later saw said that it saw increased customer awareness engagement and comparable sales Now obviously, Sydney Sweeney isn't gonna fix Nike's inventory holds their relationships or product pipeline anytime soon But she represents something Nike desperately needs which is attention Nike has a brand problem It doesn't have a recognition problem Everyone knows Nike the problem is being famous isn't saying is saying is being cool Nike spent years pulling back on from traditional retail really ships while competitors like Hocus and on expanded into them It is also awesome of its product momentum That's a dangerous combination because in a barrel people don't buy spreadsheets. They buy what they think is cool

36:49They buy what their friends are wearing They buy what they see athlete celebrities and influencers wearing and right now Nike needs to create some of that magic again And if someone from Nike PR wants to get in touch with me and put a pair of Nike's on me As long as they're signed by Sydney Sweeney. I'm gonna do a influencer post on them And if you just want an intern to sign up Sydney Sweeney. I will know the difference I'm kidding do not send me any free gifts So forget the turnaround story though And that's that's the problem is that that's what we've been banking on in Wall Street for last two or three years Oh, yeah, it's a new CEO pay attention. Hey, it's a new strategy pay attention Hey, they've got new products pay attention In a toy is getting better. It's just a matter of time China stabilizing North America's improving management is encouraged in quotes I've heard so much corporate speak in my lifetime that what we've heard from Nike in last two or three years last lifetime They came out with a presentation a few quarters back called vision 2030 crap

37:52What they need is a celebrity who could actually matter I don't like the fact that the US open hired a hundred influencers and gave them Media credentials to walk around and disrupt life for people are seeing the US open But I'm Gang aware that influencers not going away I hate every single Kardashian. There's not one of them that I like If if I were on a train that said yes or no, I'd be like nope nope nope nope to Kardashian after Kardashian after Kardashian And yet I get their culture relevance I know you're saying train that says yes or no It's kind of tried to do the cow metaphor and I was like I should back off that and just say train I went to cow That's one of the craziest things you'll ever see in your life you get off A commuter train you see like mountain of shoes And you realize millions of people died

38:57So there's a lot of cultural reference in Sydney, sweetie My johns are blue Look what happened with American to eagle city swine campaign wasn't just an advertising It became a conversation it spread across social media retail investors piled into the stock That's marketing new and marketing is supposed to do getting people talking Nike used to be one of the best companies in the world at this michael jordan wasn't just selling basketball shoes Nike made people feel like buying the shoes made them part of something My son said can I buy a pair of fast running shoes I can run faster. I'm like that's not how it works How about I put a psycho killer running behind you with a chainsaw you're gonna run faster more than the nikes I actually like the nikes story from an investment perspective at this point in time only only if you're buying it for a the dividend And you're willing to sell it into strength Or be that they do something like what I'm suggesting in higher Sydney, sweetie

39:58Oh, I can already see the the fight back Sydney, Swiney's got great feet that look awesome in nikes And then like I don't think anyone has a great looking feet just between me and you But if Nike can stabilize North America regain wholesale momentum launch products consumers actually want and connect with younger shoppers That's what That's what Sydney would do The stock doesn't need to become the old Nike overnight. It just needs to be better than they are now less bad if you will I'm not saying go out and buy a Nike because Sydney, sweetie might Qu- under mark underscore Where a pair of air Jordans, but I'm saying something more important. Don't underestimate the value of being culturally relevant Nike's got one of the most recognizable brands on earth the question isn't whether people know Nike It's whether they still want Nike and that's fixable If Nike figures that out the swoosh could be interesting again. Maybe it makes a new campaign Of course, Nicar maybe it needs a new campaign manager. Maybe it needs a new superstar

41:00Or maybe it just needs 30 seconds of city-sweeny one ridiculously good ad and a little cultural electricity I'm a big event coming up this week in Saturday Lafayette library 10 to noon. I'm gonna go over my holdings. We're gonna talk in wealth preservation. We're time at planning All the details are at robloxchoco.com. It's 10 a.m. to noon this Saturday Lafayette at the library free parking easy to get to no traffic on Saturday morning Last of intending to be in the East Bay sign up today at robloxchoco dot com