1 00:00:00,100 --> 00:00:02,900 I think there's an interesting opportunity in the very large 2 00:00:02,900 --> 00:00:06,400 Banks, and the way I think about it is. 3 00:00:07,900 --> 00:00:12,700 In the great financial crisis, the banks failed, the bond 4 00:00:12,700 --> 00:00:15,200 markets, basically failed, and the fed, and the federal 5 00:00:15,200 --> 00:00:17,100 government had to come in and bail out both. 6 00:00:17,900 --> 00:00:21,500 And this time around the banks and fine and the federal 7 00:00:21,500 --> 00:00:23,600 government had to come in to bail out the bond markets. 8 00:00:23,700 --> 00:00:26,200 Again. This is Steve Eisman on April 9 00:00:26,200 --> 00:00:28,400 23rd repeating. Something that he said 10 00:00:28,400 --> 00:00:32,600 frequently that he thinks that US banks are a good opportunity 11 00:00:32,600 --> 00:00:34,300 right now. This is something that he's 12 00:00:34,300 --> 00:00:36,800 claimed for a while. This is notable because Steve 13 00:00:36,800 --> 00:00:40,500 Eisman is one of the You people that made major bets against the 14 00:00:40,500 --> 00:00:44,100 US Financial Market against these same Banks during the 2008 15 00:00:44,100 --> 00:00:46,700 financial crisis. So I made a fortune doing that. 16 00:00:46,700 --> 00:00:49,200 It became very popular. He had movies made after them. 17 00:00:49,500 --> 00:00:52,300 And now, this same guy is saying that he sees a big opportunity 18 00:00:52,300 --> 00:00:54,600 with US Banks. He thinks that the sentiment 19 00:00:54,600 --> 00:00:57,900 against these Banks is more negative than it needs to be, 20 00:00:58,000 --> 00:01:00,000 and because of, that they're being priced lower than they 21 00:01:00,000 --> 00:01:02,400 need to be. So, I actually agree with him. 22 00:01:02,400 --> 00:01:04,900 I agree with them enough that I've been buying some of these 23 00:01:04,900 --> 00:01:06,800 Banks. I did a recent purchase of 22, 24 00:01:06,800 --> 00:01:09,000 shares of JP. Morgan that's about twenty one 25 00:01:09,000 --> 00:01:12,300 hundred dollars and I'm going to continue buying both JPMorgan 26 00:01:12,300 --> 00:01:14,800 and Bank of America over the next while. 27 00:01:14,800 --> 00:01:17,700 So especially if the price continues to decline, I'm going 28 00:01:17,700 --> 00:01:19,500 to be picking up more shares in these companies. 29 00:01:19,800 --> 00:01:22,500 I want to go over in this video, my bowl case. 30 00:01:22,500 --> 00:01:25,000 The reason that I'm going to be dollar cost averaging and 31 00:01:25,000 --> 00:01:27,600 putting a little bit more emphasis on these US Banks. 32 00:01:27,800 --> 00:01:29,500 In other news. I want to talk about, I feel 33 00:01:29,500 --> 00:01:32,700 like this is the same story over and over again, week in and week 34 00:01:32,700 --> 00:01:35,800 out, the market has traded lower because there's new fares of the 35 00:01:35,808 --> 00:01:38,800 coronavirus and there's fears of Economy, closing back down 36 00:01:39,000 --> 00:01:42,000 stores, closing back down. That's the headline that we have 37 00:01:42,200 --> 00:01:44,400 new cases. The cases are literally off the 38 00:01:44,400 --> 00:01:47,800 charts, in the US, the y-axis had to be adjusted upwards 39 00:01:47,800 --> 00:01:50,800 because we couldn't fit the new numbers on the scale right now. 40 00:01:50,800 --> 00:01:55,200 We had on June 26, 44,000 plus cases in the US. 41 00:01:55,400 --> 00:01:58,100 That's a really high number that is bigger than any day during 42 00:01:58,100 --> 00:02:01,900 the initial wave of cases. So I want to give some context 43 00:02:01,900 --> 00:02:03,600 to this. I think there's important 44 00:02:03,600 --> 00:02:05,500 details that are being left out of the reporting. 45 00:02:05,900 --> 00:02:08,400 I'll be going over that but I also On to talk a little bit 46 00:02:08,400 --> 00:02:11,500 more about investor sentiment. How if you're new to investing, 47 00:02:11,500 --> 00:02:13,300 if you've been investing for less than five years. 48 00:02:13,600 --> 00:02:17,100 You should be hoping that people react negatively to this. 49 00:02:17,500 --> 00:02:20,600 You should be hoping that people react fearfully to this. 50 00:02:20,800 --> 00:02:23,200 That's something that we can take advantage of as investors. 51 00:02:23,200 --> 00:02:25,100 So I want to dive a little bit into that. 52 00:02:25,100 --> 00:02:27,200 I think it will be an interesting topic to cover and 53 00:02:27,200 --> 00:02:29,300 then other fun things that were going to be talking about today 54 00:02:29,300 --> 00:02:31,500 are some emails that I think are interesting like one of them 55 00:02:31,500 --> 00:02:34,700 from Ashland that points out these articles saying how much 56 00:02:34,700 --> 00:02:37,500 money Jeff Bezos makes every day or how much money. 57 00:02:37,600 --> 00:02:41,300 Makes every second and how that money is even stored what he 58 00:02:41,308 --> 00:02:42,900 does with it. How people say that? 59 00:02:42,900 --> 00:02:45,600 Jeff Bezos wastes his money. I'll be talking about that in 60 00:02:45,600 --> 00:02:47,300 responding to this email. Okay. 61 00:02:47,300 --> 00:02:49,100 Let's first. Jump in a JPMorgan Chase. 62 00:02:49,100 --> 00:02:51,000 This is a bank. I'm going to be focusing on. 63 00:02:51,300 --> 00:02:53,100 Let's go ahead and read a quick summary of it. 64 00:02:53,100 --> 00:02:54,500 This is a write-up for Morningstar. 65 00:02:54,700 --> 00:02:57,700 They say, JPMorgan Chase is arguably the most dominant Bank 66 00:02:57,700 --> 00:03:00,300 in the United States, with the leading Investment Bank 67 00:03:00,300 --> 00:03:03,700 Commercial, Bank credit card, retail bank and asset wealth 68 00:03:03,700 --> 00:03:04,800 management. Franchises. 69 00:03:05,100 --> 00:03:08,000 JP Morgan is truly a force to be reckoned with the Binks 70 00:03:08,000 --> 00:03:11,200 combination of scale diversification and sound risk 71 00:03:11,200 --> 00:03:13,100 management. Seems like a simple path to 72 00:03:13,100 --> 00:03:15,800 competitive Advantage, but very few other firms have been able 73 00:03:15,800 --> 00:03:19,700 to execute a similar strategy. Even the best manage banks are 74 00:03:19,700 --> 00:03:21,400 not immune to the occasional stumble. 75 00:03:21,600 --> 00:03:24,300 But JP Morgan has managed a seemingly put all the pieces 76 00:03:24,300 --> 00:03:27,700 together in a more cohesive and less error-prone way than pairs. 77 00:03:28,100 --> 00:03:30,600 This is the type of right up that you see a lot about JP 78 00:03:30,600 --> 00:03:33,700 Morgan that it's a dominant bank that it has sound risk 79 00:03:33,700 --> 00:03:36,300 management and that it is the best among its pairs. 80 00:03:36,600 --> 00:03:39,300 It continues on say JP Morgan. Now benefits from an early 81 00:03:39,300 --> 00:03:42,300 unrivalled combination of scale scope within the United States. 82 00:03:42,600 --> 00:03:44,900 It has become the largest bank in the country by assets and 83 00:03:44,900 --> 00:03:47,600 deposits with payments depending on Metric. 84 00:03:47,600 --> 00:03:50,500 JP Morgan is generally the largest credit card issuer in 85 00:03:50,500 --> 00:03:53,700 the US the second largest u.s. Acquired by purchase volume. 86 00:03:54,000 --> 00:03:56,600 The company's Investment Bank is a leading Global generator of 87 00:03:56,600 --> 00:04:00,600 fees and JP Morgan's fic see trading desk remains, one of the 88 00:04:00,600 --> 00:04:03,500 top Global players. It goes on talking about the 89 00:04:03,500 --> 00:04:06,200 scale of this company says the scale and multiple Revenue 90 00:04:06,200 --> 00:04:09,200 sources allow the bank to It's customers switching costs, 91 00:04:09,400 --> 00:04:11,600 generate more Revenue per risk-weighted assets than 92 00:04:11,600 --> 00:04:14,600 smaller Pairs, and also have a larger percentage of Revenue 93 00:04:14,600 --> 00:04:17,399 come from fees. We also see the scale leading to 94 00:04:17,399 --> 00:04:20,500 larger more, scalable Tech budgets, which should only 95 00:04:20,500 --> 00:04:22,100 increase in importance in the future. 96 00:04:22,300 --> 00:04:25,400 This is morningstar's basic thoughts on JP Morgan is that 97 00:04:25,500 --> 00:04:28,000 it's the largest most dominant competitive Bank in the United 98 00:04:28,000 --> 00:04:29,900 States. That has sound risk management. 99 00:04:30,100 --> 00:04:33,400 It generates huge profits, and they believe it has a wide 100 00:04:33,400 --> 00:04:36,300 economic mode and they're not the only ones, the cfra 101 00:04:36,300 --> 00:04:39,500 currently gives it a buy rating. With 4 stars out of 5, they say 102 00:04:39,500 --> 00:04:42,300 JPMorgan remains Best in Class among large US Banks. 103 00:04:42,300 --> 00:04:46,100 In our view, even though we expect quarter to of 2020 to 104 00:04:46,100 --> 00:04:49,600 show the full brunt of covid-19 s impact on banking activity. 105 00:04:49,600 --> 00:04:53,500 We forecast, JP Morgan is well positioned to Rebound in the 106 00:04:53,500 --> 00:04:56,300 second half of 2020. So this is what most analyst 107 00:04:56,300 --> 00:04:58,400 firms are saying. That JP Morgan is 108 00:04:58,400 --> 00:05:00,500 well-positioned. Even in the face of the 109 00:05:00,500 --> 00:05:03,600 coronavirus, even in the face of a severe recession that their 110 00:05:03,600 --> 00:05:06,300 position to be able to take on these bad loans without lowering 111 00:05:06,300 --> 00:05:09,200 their Book value. We mentioned Steve Eisman before 112 00:05:09,300 --> 00:05:11,100 and this is something that he's talked about a lot. 113 00:05:11,400 --> 00:05:14,000 He's asked about the systemic risk of u.s. 114 00:05:14,000 --> 00:05:16,100 Banks. Pretty much can the same thing 115 00:05:16,100 --> 00:05:17,900 happen again. Can we go through recession and 116 00:05:17,900 --> 00:05:20,500 these Banks just fail like they did in 2008. 117 00:05:21,100 --> 00:05:24,500 I don't see a systemic problem. And you know, the banking system 118 00:05:24,500 --> 00:05:28,100 isn't is in the best shape of the 30 years. 119 00:05:28,100 --> 00:05:31,000 I've been analyzing Banks, you know, is it going to be a 120 00:05:31,000 --> 00:05:33,100 recession next year? The year after? 121 00:05:33,100 --> 00:05:34,800 I don't know. I mean, I think we are, we are 122 00:05:35,200 --> 00:05:39,000 he said, then in 2019 that he Systemic risks with the banks 123 00:05:39,200 --> 00:05:41,800 and that they're in the best shape that he's seen in the 30 124 00:05:41,800 --> 00:05:44,200 years that he's been looking at Banks, but that was back in 125 00:05:44,200 --> 00:05:46,800 2019. Nobody could have foreseen the 126 00:05:46,800 --> 00:05:49,500 full extent of the coronavirus. Let's go ahead and get his 127 00:05:49,500 --> 00:05:51,600 updated opinion on this. Maybe it changed. 128 00:05:51,800 --> 00:05:53,500 Maybe he really didn't know that there's going to be something 129 00:05:53,500 --> 00:05:56,600 quite this bad and this unique, come along with the economy and 130 00:05:56,600 --> 00:05:58,000 that could reasonably change his opinion. 131 00:05:58,400 --> 00:06:01,700 So here we are April 13th of 2020, well, into the 132 00:06:01,700 --> 00:06:03,700 coronavirus, so he's, well aware of the coronavirus. 133 00:06:03,700 --> 00:06:06,800 We've been in it for months, and this is his opinion on banks. 134 00:06:06,800 --> 00:06:09,900 The Did opinion on it. There's an interesting 135 00:06:09,900 --> 00:06:14,300 opportunity in the very large Banks and the way I think about 136 00:06:14,300 --> 00:06:18,300 it is. In the great financial crisis, 137 00:06:19,600 --> 00:06:23,100 the banks failed, the bond markets, basically failed, and 138 00:06:23,100 --> 00:06:24,900 the fed, and the federal government had to come in and 139 00:06:24,900 --> 00:06:28,700 bail out both. And this time around the banks 140 00:06:28,700 --> 00:06:31,200 and fine and the federal government had to come and bail 141 00:06:31,200 --> 00:06:35,100 out the bond markets again. And so, the way I like to think 142 00:06:35,100 --> 00:06:39,200 about, if you wanted to put it in kind of a catchy phrase way 143 00:06:39,800 --> 00:06:43,400 the banks of 142 and the bond markets are 0 for 2, even in 144 00:06:43,400 --> 00:06:46,700 2020 after knowing about the coronavirus, he Not worried 145 00:06:46,700 --> 00:06:49,100 about Banks and explains why he's not worried about them. 146 00:06:49,500 --> 00:06:53,200 The regulatory apparatus spent years working on the banks. 147 00:06:53,200 --> 00:06:55,100 Making sure this would never happen again. 148 00:06:55,200 --> 00:06:58,400 And led by fed former fed Governor Daniel. 149 00:06:58,400 --> 00:07:01,700 Tarullo. The banks were forced to deliver 150 00:07:02,100 --> 00:07:09,200 2D risk and to wield multiples more liquidity than they ever 151 00:07:09,200 --> 00:07:11,100 imagined. Now, they complained about it 152 00:07:11,100 --> 00:07:13,900 all the way, but they had to do it anyway, and so now that we 153 00:07:13,900 --> 00:07:18,400 have a second great. Crisis, the banks are fine. 154 00:07:18,600 --> 00:07:20,300 He says, he thinks our banks are fine. 155 00:07:20,400 --> 00:07:22,900 They even in the face of the coronavirus and the recession 156 00:07:22,900 --> 00:07:25,600 coming up that the u.s. Banks are not going to have to 157 00:07:25,600 --> 00:07:28,200 be bailed out by the government again, and he goes on to say 158 00:07:28,200 --> 00:07:30,200 that because of that, he thinks they're one of the best 159 00:07:30,200 --> 00:07:33,200 cyclical, plays out there. The best cyclical play out. 160 00:07:33,200 --> 00:07:36,100 There are the very large Banks because in the great financial 161 00:07:36,100 --> 00:07:39,200 crisis, they destroyed Book value and had to raise Capital 162 00:07:39,200 --> 00:07:41,600 at the bottom and this time around they would have to raise 163 00:07:41,600 --> 00:07:43,900 Capital at all and they won't destroy any book value. 164 00:07:43,900 --> 00:07:46,600 So he's pretty much saying that during the financial This. 165 00:07:46,800 --> 00:07:50,300 These Banks had a raise Capital to pay for loan losses at 166 00:07:50,300 --> 00:07:52,500 completely bottom of the barrel prices. 167 00:07:52,600 --> 00:07:55,100 They had to sell off their assets and destroy their Book 168 00:07:55,100 --> 00:07:57,500 value at the lowest prices possible. 169 00:07:57,700 --> 00:08:00,600 This is like being margin called on your portfolio and having to 170 00:08:00,600 --> 00:08:03,800 sell a good portion of it during the bottom of a recession, not a 171 00:08:03,808 --> 00:08:06,600 good situation to be in. So that's what the bank's went 172 00:08:06,600 --> 00:08:08,000 through during the financial crisis. 173 00:08:08,200 --> 00:08:10,400 He does not think that they're going to have to do that again. 174 00:08:10,500 --> 00:08:13,000 You think that they have enough Capital that they won't have to 175 00:08:13,000 --> 00:08:15,700 raise any Capital during this recession, that they'll be able 176 00:08:15,700 --> 00:08:18,400 to cover the Losses and they won't destroy Book value. 177 00:08:18,400 --> 00:08:22,600 So, that's the biggest part of the BET hair is if banks have 178 00:08:22,600 --> 00:08:25,600 enough Capital, if they have enough reserves to be able to 179 00:08:25,600 --> 00:08:28,000 cover the losses of the loans that are going to fail. 180 00:08:28,000 --> 00:08:30,600 If you think the failure is going to be so severe, that 181 00:08:30,600 --> 00:08:32,400 banks have to destroy Book value. 182 00:08:32,400 --> 00:08:34,200 Then you shouldn't be investing in them. 183 00:08:34,200 --> 00:08:36,500 If you think the banks will be able to make it through this, 184 00:08:36,500 --> 00:08:39,400 without destroying Book value. They should come out relatively 185 00:08:39,400 --> 00:08:40,600 strong through it. Now. 186 00:08:40,600 --> 00:08:43,400 The FED is also looked into this because banks are vital to the 187 00:08:43,408 --> 00:08:45,500 US economy. If banks run out of money. 188 00:08:45,500 --> 00:08:48,200 If they Don't loan out anymore because they're reserving all 189 00:08:48,200 --> 00:08:50,200 their money to be able to pay for loan losses. 190 00:08:50,600 --> 00:08:53,700 What that does is it kind of chokes the US economy makes it 191 00:08:53,700 --> 00:08:56,400 so nobody can get a line of credit, which is not good for 192 00:08:56,400 --> 00:08:57,800 growth. And we need a lot of growth to 193 00:08:57,800 --> 00:09:00,600 get out of a recession. So the FED doesn't want that 194 00:09:00,600 --> 00:09:02,900 situation to happen. So they do what's called a 195 00:09:02,908 --> 00:09:05,300 stress test where they put the bank's through different 196 00:09:05,300 --> 00:09:07,200 scenarios and they try to find out. 197 00:09:07,200 --> 00:09:10,300 If the bank can survive, what they found is that US banks are 198 00:09:10,300 --> 00:09:12,800 healthy enough to withstand the coronavirus crisis. 199 00:09:12,800 --> 00:09:15,800 They said that they might suffer tremendous losses. 200 00:09:16,200 --> 00:09:18,200 There might be hundreds of billions of dollars of loan 201 00:09:18,200 --> 00:09:21,000 losses, but the banks will still be able to come through it. 202 00:09:21,000 --> 00:09:22,700 So, that's what their conclusion is. 203 00:09:23,000 --> 00:09:25,000 There's always a chance that's outside of the parameters that 204 00:09:25,000 --> 00:09:27,700 they put the recession is in the future. 205 00:09:27,700 --> 00:09:28,800 We don't know what's going to happen. 206 00:09:29,100 --> 00:09:31,400 But from what the FED did with its test, they found that the 207 00:09:31,400 --> 00:09:33,900 banks were positioned really well to handle these type of 208 00:09:33,900 --> 00:09:35,600 losses. Now, in addition to this, the 209 00:09:35,600 --> 00:09:38,800 FED really wants these Banks to be as conservative as possible. 210 00:09:38,900 --> 00:09:41,500 They don't want them to run into trouble and they want them to be 211 00:09:41,508 --> 00:09:44,500 able to support the economy with as much cash as possible. 212 00:09:44,800 --> 00:09:47,200 So they're telling the banks. I want you to stop giving away 213 00:09:47,200 --> 00:09:49,000 money. We want you to stop, giving away 214 00:09:49,000 --> 00:09:51,900 money to shareholders. The basic ways, that companies 215 00:09:51,900 --> 00:09:54,500 give away, money to shareholders is through share BuyBacks. 216 00:09:54,500 --> 00:09:57,000 That's one of the indirect ways that give money to shareholders. 217 00:09:57,300 --> 00:09:58,600 The other more direct ways through. 218 00:09:58,600 --> 00:10:00,500 Dividends. Those are the two basic ways 219 00:10:00,500 --> 00:10:02,200 that companies pay out their shareholders. 220 00:10:02,200 --> 00:10:05,100 Now the banks have already stopped their share buyback 221 00:10:05,100 --> 00:10:08,700 programs, but the FED made it official that they cannot do. 222 00:10:08,700 --> 00:10:12,000 Share BuyBacks right now. Share BuyBacks, make up a much 223 00:10:12,000 --> 00:10:14,300 bigger amount of spend. Then the dividends do. 224 00:10:14,400 --> 00:10:17,700 So, the Dividends are currently Lie on the table, but with the 225 00:10:17,700 --> 00:10:21,700 share buyback program cut from every major bank, that's one of 226 00:10:21,700 --> 00:10:24,600 the biggest things that supports the price of these shares that 227 00:10:24,600 --> 00:10:26,500 supports the price going up all the time. 228 00:10:26,600 --> 00:10:29,300 If we look at a chart of JPMorgan, they went through the 229 00:10:29,300 --> 00:10:30,900 coronavirus. Obviously, there's a big 230 00:10:30,900 --> 00:10:33,800 sell-off, but now they don't even have the support of share 231 00:10:33,800 --> 00:10:35,600 BuyBacks. I think this will cause 232 00:10:35,600 --> 00:10:38,000 continual downward pressure on these Banks. 233 00:10:38,000 --> 00:10:40,400 They're not buying their own stock and a lot of people are 234 00:10:40,400 --> 00:10:41,900 very scared about the fate of the economy. 235 00:10:41,900 --> 00:10:45,400 And so there's a lot of downward pressure on these Banks if we 236 00:10:45,400 --> 00:10:49,500 compared to the S&P. 500, the S&P 500 has almost recovered, 237 00:10:49,500 --> 00:10:51,500 its down seven percent, year-to-date. 238 00:10:51,700 --> 00:10:53,100 That's pretty good. JP. 239 00:10:53,100 --> 00:10:57,800 Morgan is still down year-to-date 34% And I think 240 00:10:57,800 --> 00:10:59,400 that this could continue to happen. 241 00:10:59,400 --> 00:11:02,000 I think the shares could continue to go down because they 242 00:11:02,000 --> 00:11:03,600 don't have the support of share BuyBacks. 243 00:11:03,600 --> 00:11:05,400 And investors are pretty timid right now. 244 00:11:05,500 --> 00:11:07,800 So, share BuyBacks are completely done for banks. 245 00:11:07,900 --> 00:11:09,600 In the meantime. There's going to be no share 246 00:11:09,600 --> 00:11:12,000 BuyBacks from banks that something that was supporting 247 00:11:12,000 --> 00:11:13,700 the stock price. Now that's gone. 248 00:11:14,000 --> 00:11:16,500 It also says that dividends have some restrictions Options, it 249 00:11:16,500 --> 00:11:19,100 says Banks which will announce their dividend plans for next 250 00:11:19,100 --> 00:11:20,200 quarter. As soon as Monday. 251 00:11:20,400 --> 00:11:22,800 They won't be able to make payouts that are greater than 252 00:11:22,800 --> 00:11:26,000 their average quarterly profit from the four most recent 253 00:11:26,000 --> 00:11:28,100 quarters based on that restriction. 254 00:11:28,200 --> 00:11:30,400 Most of the banks are going to continue to be able to pay the 255 00:11:30,400 --> 00:11:31,600 dividend. They were before. 256 00:11:31,800 --> 00:11:33,900 They might choose to lower it but they're not going to be 257 00:11:33,900 --> 00:11:35,800 required to based off that restriction. 258 00:11:36,000 --> 00:11:38,100 I don't see any banks being able to raise their dividends. 259 00:11:38,100 --> 00:11:39,500 I don't think they're gonna be able to raise them. 260 00:11:39,700 --> 00:11:41,800 But most of them could continue to pay the dividend. 261 00:11:41,800 --> 00:11:45,400 They were before it highlights Wells, Fargo as being the only 262 00:11:45,400 --> 00:11:47,900 Bank. Over that restriction, it says 263 00:11:47,900 --> 00:11:50,600 that only Wells Fargo has a dividend payout that would 264 00:11:50,600 --> 00:11:52,900 breach the new threshold set by the Fed. 265 00:11:53,000 --> 00:11:54,600 So that's somewhat to be expected. 266 00:11:54,600 --> 00:11:57,800 Now as far as these Banks, I own JPMorgan Chase and Bank of 267 00:11:57,800 --> 00:11:59,900 America. You have to know if you're 268 00:11:59,900 --> 00:12:01,200 buying these Banks. Right now. 269 00:12:01,400 --> 00:12:04,700 There is a high probability that they will cut their dividends 270 00:12:04,800 --> 00:12:06,500 that they will reduce their dividend payments. 271 00:12:06,900 --> 00:12:09,300 The reason why is they might choose to do that, to be very 272 00:12:09,300 --> 00:12:11,100 conservative? They might want to keep as much 273 00:12:11,100 --> 00:12:14,600 cash as possible going through this recession if that's the 274 00:12:14,600 --> 00:12:16,000 case. I'm not going to be selling 275 00:12:16,000 --> 00:12:17,600 these. As companies I'm investing in 276 00:12:17,600 --> 00:12:20,500 them because I anticipate that they'll be paying out a lot of 277 00:12:20,500 --> 00:12:23,500 money over the next 10 to 20 years in dividends, if they 278 00:12:23,500 --> 00:12:26,300 temporarily halt their payments for a year. 279 00:12:26,800 --> 00:12:29,900 Just as we make it through this recession, just to be sure just 280 00:12:29,900 --> 00:12:32,600 to be absolutely certain that they don't have to destroy their 281 00:12:32,600 --> 00:12:34,200 company and destroy their Book value. 282 00:12:34,500 --> 00:12:38,100 I'm completely fine with that. I anticipate that JPMorgan Chase 283 00:12:38,200 --> 00:12:41,000 or Bank of America if they do temporarily suspend their 284 00:12:41,000 --> 00:12:44,200 dividend payments, they'll reinstate it as soon as they can 285 00:12:44,300 --> 00:12:45,800 as soon as they have a clear out look. 286 00:12:45,900 --> 00:12:47,800 So. I think that I'm Investing For 287 00:12:47,800 --> 00:12:50,300 future dividend payments. These are two companies that 288 00:12:50,300 --> 00:12:53,200 over the next 10 to 20 years. They will be paying a lot of 289 00:12:53,200 --> 00:12:55,200 money in dividends. That's my thought on it. 290 00:12:55,400 --> 00:12:58,200 If I have to sacrifice one year of dividends to be able to buy 291 00:12:58,200 --> 00:13:00,300 in a company at a very good price that I know is going to 292 00:13:00,308 --> 00:13:02,700 pay dividends in the future. That's something I'm willing to 293 00:13:02,708 --> 00:13:04,300 do. So we'll see where this goes. 294 00:13:04,300 --> 00:13:05,600 I'm going to keep up with these Banks. 295 00:13:05,900 --> 00:13:08,500 Right now, Jay P. Morgan is a four thousand dollar 296 00:13:08,500 --> 00:13:11,500 position of my portfolio. It's probably going to become my 297 00:13:11,500 --> 00:13:15,000 largest position over the next few months, especially if the 298 00:13:15,000 --> 00:13:16,600 share price keeps. Falling. 299 00:13:16,700 --> 00:13:19,500 I'm going to be buying more of this company if people become 300 00:13:19,500 --> 00:13:21,600 very fearful, there's a lot of fair. 301 00:13:21,700 --> 00:13:24,100 If people are reacting in there selling out of the market, if 302 00:13:24,100 --> 00:13:26,900 the coronavirus continues to go crazy and wreak havoc on the 303 00:13:26,908 --> 00:13:28,700 economy. I'm going to be buying more of 304 00:13:28,700 --> 00:13:30,600 this company, as the price comes down. 305 00:13:30,608 --> 00:13:34,000 I think there's a lot of downward pressure on banks right 306 00:13:34,000 --> 00:13:36,300 now. Not only did their share buyback 307 00:13:36,300 --> 00:13:40,300 program stop, which is something that really does buoy the stock. 308 00:13:40,300 --> 00:13:42,000 But we also have the fears of the coronavirus. 309 00:13:42,000 --> 00:13:43,600 We have the fears of banks in general. 310 00:13:43,600 --> 00:13:46,900 We have a lot going on right now, so, Want to take advantage 311 00:13:46,900 --> 00:13:49,900 of that as much as possible. If this price continues to go 312 00:13:49,900 --> 00:13:52,200 down right now, it's trading at 92 dollars. 313 00:13:52,700 --> 00:13:54,600 If it continues to go down. I'm going to be buying more of 314 00:13:54,600 --> 00:13:56,200 it. So this will probably become my 315 00:13:56,200 --> 00:13:57,700 biggest position here really soon. 316 00:13:58,200 --> 00:14:00,900 Even with that said, I have to let people know if you're 317 00:14:00,900 --> 00:14:03,300 looking at buying a company like this and you see research like 318 00:14:03,300 --> 00:14:05,700 this, you got to do your own research to be able to stick 319 00:14:05,700 --> 00:14:08,500 with stocks for a long time and realize that I'm heavily 320 00:14:08,500 --> 00:14:11,200 Diversified. So I want a lot of companies, JP 321 00:14:11,200 --> 00:14:14,200 Morgan is one of my Holdings. It's one of the bigger bets but 322 00:14:14,200 --> 00:14:16,000 it's not my only holding. I'm really well. 323 00:14:16,100 --> 00:14:18,900 Diversified so keep that in mind as you make purchases of 324 00:14:18,900 --> 00:14:21,600 companies like this. Now having said that I do see a 325 00:14:21,600 --> 00:14:23,200 lot of potential with this company. 326 00:14:23,500 --> 00:14:26,600 It has a current market cap. The size of it is two hundred, 327 00:14:26,600 --> 00:14:29,600 eighty two billion dollars, which is a big company, but two 328 00:14:29,600 --> 00:14:32,600 hundred eighty two billion dollars during normal times in 329 00:14:32,600 --> 00:14:38,800 2019, JP Morgan made 36 billion dollars in net income. 36 330 00:14:38,800 --> 00:14:42,200 billion in net income. That's a company that is under 331 00:14:42,200 --> 00:14:44,200 300 billion dollars in market cap. 332 00:14:44,500 --> 00:14:47,400 Try to find another company. It has that type of net income 333 00:14:47,400 --> 00:14:51,200 for its current market cap size. It's very difficult to find. 334 00:14:51,200 --> 00:14:54,000 So, during normal times. This is a highly profitable 335 00:14:54,000 --> 00:14:56,100 company. They're invested in a lot of 336 00:14:56,108 --> 00:14:57,600 tech. They're moving forward with 337 00:14:57,600 --> 00:14:59,500 that. The price of it has gone down 338 00:14:59,500 --> 00:15:01,800 quite a bit. And I think as this company 339 00:15:01,800 --> 00:15:04,400 makes its way through this recession, if they can do it 340 00:15:04,408 --> 00:15:07,100 without destroying Book value and they get to a situation 341 00:15:07,100 --> 00:15:09,000 where they start re-implementing, their share 342 00:15:09,000 --> 00:15:11,400 buyback programs. If they start raising their 343 00:15:11,400 --> 00:15:14,100 dividends again, I could see this company both having a lot 344 00:15:14,100 --> 00:15:17,500 of share price appreciation and Pay dividends at the same time. 345 00:15:17,500 --> 00:15:19,500 So that's what I'm hoping for now. 346 00:15:19,500 --> 00:15:21,200 Having said that I can't see the future. 347 00:15:21,200 --> 00:15:23,900 We don't know what's going to happen, but we'll find out soon. 348 00:15:24,100 --> 00:15:26,300 Okay, so shifting gears a little bit to something. 349 00:15:26,300 --> 00:15:28,400 I still think is heavily related, especially if you're 350 00:15:28,400 --> 00:15:31,200 investing in Banks, is the coronavirus we've heard about 351 00:15:31,200 --> 00:15:33,000 this for so long, but I think there's some important 352 00:15:33,000 --> 00:15:34,600 information that's being left out. 353 00:15:35,000 --> 00:15:38,400 First of all, we have the fear. We have Florida, shutting back 354 00:15:38,400 --> 00:15:39,600 down. Says it Florida. 355 00:15:39,600 --> 00:15:41,200 Thought it had dodged, the coronavirus. 356 00:15:41,200 --> 00:15:44,300 Now, it faces a surge. We have similar news for other 357 00:15:44,300 --> 00:15:45,900 states. The surgeon covid-19. 358 00:15:46,200 --> 00:15:49,200 Cases tests, Austin's reopening. So Texas is seeing the same 359 00:15:49,200 --> 00:15:52,100 thing. Basically, the numbers were all 360 00:15:52,100 --> 00:15:54,100 going down. We started to reopen back up the 361 00:15:54,100 --> 00:15:56,600 economy. People went out and they did 362 00:15:56,600 --> 00:15:59,600 their normal business, just like normal and the coronavirus 363 00:15:59,600 --> 00:16:02,500 spread like crazy. So we can see the numbers over 364 00:16:02,500 --> 00:16:04,700 the u.s. They're really high right now, 365 00:16:04,700 --> 00:16:07,200 but there's some other information that I think is 366 00:16:07,200 --> 00:16:09,300 interesting. One of them is these antibody 367 00:16:09,300 --> 00:16:12,000 tests that we're doing show that there might be a lot more people 368 00:16:12,000 --> 00:16:15,000 with the coronavirus or that have had the coronavirus that 369 00:16:15,000 --> 00:16:16,400 weren't officially tested. It. 370 00:16:16,400 --> 00:16:20,100 So the government estimates, 20 million Americans were infected 371 00:16:20,100 --> 00:16:22,500 significantly higher than the official count. 372 00:16:22,900 --> 00:16:25,500 That's ten times higher. So if there really was 20 373 00:16:25,500 --> 00:16:28,700 million people in the u.s. Infected that means that the 374 00:16:28,900 --> 00:16:31,800 fatality rate is 10 times lower than what it's reported right 375 00:16:31,800 --> 00:16:34,600 now. So that would be good and bad 376 00:16:34,600 --> 00:16:36,200 news. It mean the fatality rate is 377 00:16:36,200 --> 00:16:39,000 lower that a lot more people have the coronavirus but that it 378 00:16:39,000 --> 00:16:41,900 spreads more than we think. So we have information like that 379 00:16:41,900 --> 00:16:45,300 and we also have better data on who is vulnerable to the 380 00:16:45,300 --> 00:16:48,100 Coronavirus. This report shows that the 381 00:16:48,100 --> 00:16:50,100 vulnerability, the amount of lethality. 382 00:16:50,100 --> 00:16:53,900 This virus has is heavily correlated to your age, 80 383 00:16:53,900 --> 00:16:57,100 percent of the deaths Linked In the coronavirus in Europe, where 384 00:16:57,100 --> 00:17:02,100 people over 75 years old, 80 percent of the deaths in Europe, 385 00:17:02,100 --> 00:17:06,000 where people over the age of 75 that is heavily weighted towards 386 00:17:06,000 --> 00:17:07,900 elderly people. If you look at this, I can 387 00:17:07,908 --> 00:17:12,099 actually break it down into these different crafts. 15 to 44 388 00:17:12,099 --> 00:17:13,800 year olds. That's a pretty large age 389 00:17:13,800 --> 00:17:17,900 demographic that red line. Is the amount of deaths from it? 390 00:17:18,000 --> 00:17:20,400 That's the fatality rate. It's very low. 391 00:17:20,800 --> 00:17:24,400 It's almost zero. If you go to 45 to 64, it 392 00:17:24,400 --> 00:17:26,200 immediately bumps up quite a bit. 393 00:17:26,400 --> 00:17:29,200 You can see the starting of it is quite a bit higher and then 394 00:17:29,200 --> 00:17:32,500 it has another bump. That's 45 to 64 years old. 395 00:17:32,800 --> 00:17:35,900 That's about right there. The whole working demographic 396 00:17:35,900 --> 00:17:39,400 from 15 to 64 years old is, basically people in the 397 00:17:39,408 --> 00:17:43,100 workforce, but look at it from their people that are elderly or 398 00:17:43,100 --> 00:17:45,100 retired. You have people over the age of 399 00:17:45,100 --> 00:17:48,000 65. If it already starts very high 400 00:17:48,000 --> 00:17:50,500 and then you see a significant bump in fatality rate. 401 00:17:50,600 --> 00:17:55,000 So it's much higher, 65 to 74 and then 75 to 80 for if you're 402 00:17:55,000 --> 00:17:57,700 in this age group, you're very vulnerable to the coronavirus, 403 00:17:57,700 --> 00:18:01,800 not something you want to get if you're 85, Plus, it is extremely 404 00:18:01,800 --> 00:18:04,900 lethal. So you look at this breakdown 405 00:18:04,900 --> 00:18:06,600 and it does give us some information. 406 00:18:06,600 --> 00:18:10,800 It shows us that people that are mostly young and otherwise, good 407 00:18:10,800 --> 00:18:14,300 health, 15 to 44. They have a very low fatality 408 00:18:14,300 --> 00:18:17,200 rate from the coronavirus as you get Order it's far more deadly 409 00:18:17,200 --> 00:18:20,600 in this age demographic data is important because a lot of the 410 00:18:20,600 --> 00:18:23,800 new cases seem to be people that are younger than previous. 411 00:18:23,800 --> 00:18:25,700 It used to be affecting a lot of elderly people. 412 00:18:26,200 --> 00:18:29,000 Now, it seems like most the new infections are younger people 413 00:18:29,000 --> 00:18:32,600 from The New York Times? It says, in Arizona where drive 414 00:18:32,600 --> 00:18:35,300 up sites are overwhelmed by people seeking coronavirus test, 415 00:18:35,300 --> 00:18:39,800 people ages 22:44 account for nearly half of all cases in 416 00:18:39,800 --> 00:18:42,200 Florida, which breaks records for new cases. 417 00:18:42,200 --> 00:18:45,300 Nearly every day. The median age of cases, testing 418 00:18:45,300 --> 00:18:48,300 positive for the virus. The virus have dropped to 35 419 00:18:48,400 --> 00:18:52,500 down from 65 in March. So, the median age of people 420 00:18:52,500 --> 00:18:56,600 getting the coronavirus in Florida has dropped from 65 to 421 00:18:56,600 --> 00:18:58,500 35. If we go back and look at the 422 00:18:58,500 --> 00:19:02,400 graphs again, and compare 35 year, olds with 65 year, olds. 423 00:19:02,400 --> 00:19:06,000 Obviously, the 65 year old age group is far more lethal. 424 00:19:06,300 --> 00:19:09,100 So this is both good news and bad news. 425 00:19:09,400 --> 00:19:12,400 Having the median age go down. Means that likely there's going 426 00:19:12,400 --> 00:19:15,100 to be a lower fatality rate, but obviously having it spread out 427 00:19:15,100 --> 00:19:16,800 of control like this. Not ideal. 428 00:19:17,200 --> 00:19:18,700 Okay. Let's get to some emails. 429 00:19:18,700 --> 00:19:21,300 Joseph at Joseph Carlson show.com is the email address. 430 00:19:21,600 --> 00:19:24,500 The first one, says hi Joseph. My name is Ashlyn and I've 431 00:19:24,500 --> 00:19:26,700 started listening to your show during the pandemic. 432 00:19:26,800 --> 00:19:28,800 Congratulations on your 100th video. 433 00:19:29,100 --> 00:19:31,300 I've watched at least half of them at this point. 434 00:19:31,700 --> 00:19:34,200 I am a college student studying computer science who has been 435 00:19:34,200 --> 00:19:36,800 using this down, time to learn more about investing in finance. 436 00:19:37,100 --> 00:19:39,600 I've been reading a lot of books, listening to podcasts and 437 00:19:39,600 --> 00:19:42,400 following the news, but there's one thing I just do not 438 00:19:42,400 --> 00:19:45,700 understand most of my friends at College in many Twitter users 439 00:19:45,700 --> 00:19:47,900 trash. It's Jeff Bezos has being super 440 00:19:47,900 --> 00:19:51,600 duper wealthy and not using his wealth to fix problems, like, 441 00:19:51,600 --> 00:19:54,500 Flint, Michigan, or improve his employees working conditions, 442 00:19:55,000 --> 00:19:57,700 but wouldn't most Basil's wealth be tied up in Amazon? 443 00:19:57,700 --> 00:20:00,300 Stock. And if so, how can he actually 444 00:20:00,300 --> 00:20:02,100 make thousands of dollars per second. 445 00:20:02,100 --> 00:20:04,000 For some reason. I see this metric everywhere 446 00:20:04,500 --> 00:20:07,800 with a quick Google search. I see that Bezos has a worth of 447 00:20:07,808 --> 00:20:09,300 about a hundred sixty five billion. 448 00:20:09,600 --> 00:20:12,700 Yahoo! Finance says Bezos owns fifty 449 00:20:12,700 --> 00:20:15,900 five and a half million shares of Amazon at 2700 dollars. 450 00:20:16,100 --> 00:20:18,300 Here. That means he has around 150 451 00:20:18,300 --> 00:20:19,800 billion in Amazon. Chairs. 452 00:20:20,000 --> 00:20:22,700 Amazon does not pay a dividend. He apparently makes his salary 453 00:20:22,700 --> 00:20:25,100 about 80,000 a year with the rest of his income. 454 00:20:25,100 --> 00:20:27,500 Be from bonuses as a CEO of Amazon. 455 00:20:27,800 --> 00:20:31,000 The article, says Bezos annual income is 78 million. 456 00:20:31,100 --> 00:20:34,500 Where is that money coming from? If not Amazon dividends or his 457 00:20:34,500 --> 00:20:36,800 average salary? Well Ashland, this is an 458 00:20:36,800 --> 00:20:39,500 interesting question. You point out, that most your 459 00:20:39,508 --> 00:20:42,800 friends at college and many Twitter users trash, Jeff Bezos 460 00:20:42,800 --> 00:20:45,900 for being super wealthy and not using his wealth. 461 00:20:46,000 --> 00:20:49,200 To fix problems, like, Flint, Michigan or improve employees. 462 00:20:49,200 --> 00:20:52,800 Working conditions. I've seen this a lot and I would 463 00:20:52,800 --> 00:20:56,100 say, it doesn't even stop there. I've seen people that when Jeff 464 00:20:56,100 --> 00:20:59,400 Bezos donates to something, they complain that he doesn't donate 465 00:20:59,400 --> 00:21:01,800 enough. And if he doesn't donate, they 466 00:21:01,800 --> 00:21:05,500 complain that he didn't donate. And every single cause going on 467 00:21:05,500 --> 00:21:07,400 every single thing that's important to them. 468 00:21:07,500 --> 00:21:10,200 Jeff Bezos should be doing something to fix the thing. 469 00:21:10,200 --> 00:21:12,500 That's important to them. He should be fixing all of 470 00:21:12,500 --> 00:21:15,200 life's issues. Jeff Bezos, should fix every 471 00:21:15,200 --> 00:21:16,700 single problem. We In the u.s. 472 00:21:17,100 --> 00:21:20,200 I think that's the expectation people have, is that he's super 473 00:21:20,200 --> 00:21:22,600 wealthy. He has 150 billion dollars. 474 00:21:22,900 --> 00:21:25,900 So he should be the guy that every single problem is funneled 475 00:21:25,900 --> 00:21:28,500 to him and we should look to him to solve all of them. 476 00:21:29,300 --> 00:21:30,600 That's kind of the impression. I'm getting. 477 00:21:31,000 --> 00:21:33,500 I mean, it's silly and it's really lazy just to have any 478 00:21:33,500 --> 00:21:37,500 problem and blame on Jeff Bezos. I think it's a really lazy way 479 00:21:37,500 --> 00:21:39,200 of looking at things but that's kind of a trend. 480 00:21:39,200 --> 00:21:42,200 I'm seeing right now, but I look at this. 481 00:21:42,200 --> 00:21:45,400 It's obvious if you learn about Finance you learn about how his 482 00:21:45,400 --> 00:21:48,800 money's actually Restored. He simply has a big stake in 483 00:21:48,800 --> 00:21:50,700 Amazon. That is where most of his net 484 00:21:50,700 --> 00:21:52,000 worth. Is it son? 485 00:21:52,000 --> 00:21:54,600 Realized when he sells Amazon stock? 486 00:21:54,600 --> 00:21:57,300 He's realizing those gains. He's cashing out. 487 00:21:57,400 --> 00:21:59,800 Then he can actually do something with the money, but he 488 00:21:59,800 --> 00:22:02,500 has the huge majority of it in Amazon stock. 489 00:22:03,000 --> 00:22:06,400 And if he sold all of that, he would no longer own Amazon, he 490 00:22:06,400 --> 00:22:09,100 would not be able to run it. It would be run by other people. 491 00:22:09,200 --> 00:22:12,400 So that's the situation. He said he wants to run the 492 00:22:12,400 --> 00:22:15,800 company that he started. He created Amazon, and I think 493 00:22:15,800 --> 00:22:17,900 that To be able to do that. I don't think we should look at 494 00:22:17,900 --> 00:22:19,300 him to solve every single life issue. 495 00:22:19,300 --> 00:22:21,100 Either. He started a company. 496 00:22:21,300 --> 00:22:23,700 He's good at being the CEO of the company. 497 00:22:23,700 --> 00:22:25,600 He's obviously really good at growing it. 498 00:22:25,600 --> 00:22:28,300 There's not many people on this planet that can grow a company 499 00:22:28,300 --> 00:22:30,900 like Jeff Bezos. He's a great Capital allocator. 500 00:22:31,100 --> 00:22:33,400 He used money and he created more wealth with it. 501 00:22:33,400 --> 00:22:35,600 More Capital. He created more opportunities, 502 00:22:35,600 --> 00:22:37,500 more jobs. He grew a company that's 503 00:22:37,500 --> 00:22:40,100 difficult to do, not a lot of people can do it. 504 00:22:40,100 --> 00:22:43,200 The extent that Jeff Bezos has. So I think that we should leave 505 00:22:43,200 --> 00:22:45,600 them to do what he's good at which is growing a company. 506 00:22:46,000 --> 00:22:48,300 Offering jobs being able to create wealth. 507 00:22:48,500 --> 00:22:50,200 That's something that very few people. 508 00:22:50,200 --> 00:22:53,500 Do try to think of a lot of people that can do exactly what 509 00:22:53,500 --> 00:22:56,000 Jeff Bezos has, and the amount of people doing. 510 00:22:56,000 --> 00:23:00,100 That is very slim. So, I think it's the thing that 511 00:23:00,100 --> 00:23:02,700 you're pointing out, Twitter users complaining about them 512 00:23:02,900 --> 00:23:05,300 College, friends. There's always somebody to 513 00:23:05,300 --> 00:23:07,400 complain about and aim your problems at. 514 00:23:07,400 --> 00:23:10,500 I think that Jeff Bezos has fit right in that slot because he's 515 00:23:10,500 --> 00:23:12,600 super wealthy. I don't think that there's much 516 00:23:12,600 --> 00:23:15,200 more to it than that. I think if Amazon had some 517 00:23:15,200 --> 00:23:17,800 issues in the Price, went down a whole bunch and his net worth 518 00:23:17,800 --> 00:23:19,700 went down. People wouldn't see these big 519 00:23:19,700 --> 00:23:21,700 numbers and it would probably fizzle out from there. 520 00:23:21,700 --> 00:23:23,800 So that's kind of my thoughts on it. 521 00:23:24,100 --> 00:23:27,300 Stanley says hi Joseph. Me and my two brothers, 18 to 20 522 00:23:27,300 --> 00:23:30,600 years old in the UK have recently gotten to investing in 523 00:23:30,600 --> 00:23:33,200 the past few months and I've been keeping up to date with 524 00:23:33,200 --> 00:23:35,300 your videos. We find very helpful. 525 00:23:35,600 --> 00:23:39,400 We have inherited about 30,000 euros each which we plan to cost 526 00:23:39,400 --> 00:23:41,700 average into a long-term dividend growth portfolio. 527 00:23:42,100 --> 00:23:44,300 Starting off mainly with ETFs and bonds. 528 00:23:44,500 --> 00:23:47,300 We've noticed that there seems has to be more promising. 529 00:23:47,300 --> 00:23:49,100 American companies in terms of dividends. 530 00:23:49,300 --> 00:23:52,000 However, we're wondering whether or not it would be a good idea 531 00:23:52,000 --> 00:23:56,300 to invest in American companies with the current rate exchange 532 00:23:56,300 --> 00:23:59,700 between the dollar and Euro, which could mean we lose a bit 533 00:23:59,700 --> 00:24:02,700 of money over the long term. Well Stanley, my basic thoughts 534 00:24:02,700 --> 00:24:06,100 on this are to not worry about the exchange rate that much. 535 00:24:06,400 --> 00:24:09,400 I think that you could first look at companies where you're 536 00:24:09,400 --> 00:24:12,700 not going to have those issues. I would first focus on your own 537 00:24:12,700 --> 00:24:14,800 home court. I would look in Europe, look for 538 00:24:14,800 --> 00:24:17,100 companies in the UK. And try to find ones, you think 539 00:24:17,100 --> 00:24:20,600 are good, but I would not forego investing in companies in 540 00:24:20,600 --> 00:24:22,700 America because of the exchange rate. 541 00:24:22,700 --> 00:24:25,500 If there's companies you really want to own in the US that you 542 00:24:25,508 --> 00:24:26,500 think are going to double in size. 543 00:24:26,508 --> 00:24:28,000 You think they're going to do really well. 544 00:24:28,400 --> 00:24:30,500 I would not worry about the exchange rate. 545 00:24:30,500 --> 00:24:34,200 I would start buying shares in these companies so I would not 546 00:24:34,200 --> 00:24:35,400 let it this way. Do that much. 547 00:24:35,600 --> 00:24:38,000 I think it's good to have a little bit of home court bias to 548 00:24:38,000 --> 00:24:40,400 focus on companies around you that you're familiar with. 549 00:24:40,400 --> 00:24:43,300 But I would also not worried at all about investing in companies 550 00:24:43,300 --> 00:24:45,700 and other countries. If you think they're going to do 551 00:24:45,700 --> 00:24:47,600 really well. Well in the future, okay. 552 00:24:47,600 --> 00:24:49,300 Well, I'm going to go ahead and end this episode there. 553 00:24:49,300 --> 00:24:52,000 Thanks everybody for listening. I will see you guys next time.