Larry Jacobson discussed on Wealth from Wisdom


Crime back with us today if you've been to the into the show lately you know we've been missing though one the only Larry Jacobson but he is back by popular demand and Larry how the heck are you doing good yeah I've actually been working that you I know you've been kind of tell what I'm of a case he's gonna make you know and I've been working out around the country helped a lot of students get ready for twenty twenty because I'm telling you right now is the time to be afraid to be very afraid V. be afraid of being afraid we are rocking into that new year with some style right now I tried to work in and I couldn't it was in my head I was trying to work in a jingle all the way a something as I was letting everybody know that we had you in studio today but so I think I'm just going to start off with a quick little joke for you just to keep the holiday season going I know we're bridging the gap into new year's stuff like that but Larry what is red and smells no I'm not going there Rudolph's nose come on man Rudolph's nose all right we'll Rudolph will you guide my sleigh tonight Larry how about you guide us through some amazing conversation today on our financial markets we've got a lot to talk about we've had a lot of activity over the last little bit we had you know the holidays Russian in Russian and even before that all the drama with with the pound going down a percent you got trumping Boris blown everybody up through the through the tweets right we love the tweets lately but all that really kicks out a lot of additional volatility which does kind of lead into that be afraid of the be afraid of being afraid to have a conversation but what's going on right now what are the the word of the key things our listeners need to be focusing on inside our financial markets to stay safe well I would just talk about what Warren Buffett has been talking about for years be afraid when everybody's greedy be greedy when everybody's fearful yep and the bottom line right now is when everybody thinks the market keeps going up up and up that's the time everything gets calm and safe well you know Joe Kennedy John F. Kennedy's father once said Joe when asked why he looked out out before the crash of twenty nine he said when my shoeshine boys starts giving me tips it's time for everybody to get out and that's kind of what's going on here I mean we really there's no new news that we haven't heard the last six months the problem however is this term of Mel drop it melt out that's just kind of crazy the idea number one I don't know any that melts up you know but the bottom line is that if you don't have a plan going into twenty twenty and you keep believing everything is going to be sunny and Rosie that's the time you should be concerned it's like people always say you don't borrow money when you need it you borrow money before you need it so it's ready and available when you do need it yeah absolutely the the the bank never loans you money when you need it right you're in that situation for a reason so that that is the that that is a fun little saying I've heard a number of time I love the Warren buffet that will warm up a comment when the masses are greedy it's time to be fearful when the when the masses are fearful it's time to be greedy and and I've talked about this a few times where back in the last kind of market top somewhere back in two thousand six is two thousand seven does the markets were climbing we're having that melt up one of the things that I noticed was just boutique after boutique opening up because it's like everyone just has all this extra money to spend right now said then and then the market crashes now go out of business but also in when when your when your shoe shine boy starts giving you advice when you walk down the street and pay eight dollars for a Cup cake at a boutique cupcake shop that that's all they make when there's a New Delhi that opens up that that's a you know you have the specialty boutiques they can only thrive in the most liquid in the most highly kind of consumed environments once all the sudden that massive consumption goes away or their starts to be that little bit of a tip it starts to be that massive domino effect so that's one of the things I've always looked at as a kind of a tell tell sign inside of a a a local economic view when you start to see these things popping up we've had a really pop up over the last couple years and over the last really I'm waiting to get through the holiday season before I pass judgment on the total amount because sometimes are seasonal but is a little crazy to see how much of that is going on again there are some interesting staff to go along with this stuff when you go back into kind of historical market times the the the most money always enters at the top it always answers at the top because that's where the retail trader that's where the uninitiated is saying all look how much we missed out on I'm not gonna miss out on any more and all the sudden the rush of amateur money comes in and down the market goes reason why now all the sudden the pros have someone to sell to they sell high while the average trader the average investor buys high and we we love having the by high conversation because that's what everybody's doing every Friday on payday right now you are buying high and next week bye and higher next week bye and higher and then when the road gets pulled out from underneath this that's when the reasons why that standard kind of by high by every other Friday with our retirement plan process is soul painful in those down markets but you have an opportunity to make that not make that not be the case for you it just takes a little bit of education it just takes some understanding I one of the things we can do is we get a few of you guys register for a class right now as long as Larry is on board with that idea yeah you better know what you don't know before you need to know it we know.

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