Joe Biden, Tony Bender, Ric Edelman discussed on Bill Cunningham


Night. But one thing happened this morning and I'm watching this. It was either Bloomberg er squawk box talk about what's going to happen if there's contested election, and the experts said, if there's a contested election That means it will be like in 2000 market went down 10% on the other hand, even if Biden wins. Which, according to the experts, I pray to God. It doesn't happen that the market still is likely to go up with Jonno by that, either. But Ric Edelman of Edelman Financial engines has done a study. Of some 2000 US adults between the ages of 40 and 65 with an annual income of $100,000 a year, which is about one third of a Tony Bender makes $100,000 a year. And he has the results of that, and I listened to him Most Saturdays right here and Rick Adelman, welcome again to the Bill Cunningham Show and Rick, How are you? Doing terrific, Willy. Thank you. Are you great data? I love your stuff. I I listen on my on my way to the golf course with your permission. I listened every Saturday morning here with you and I spend you and I spent 20 minutes together. Give me your crystal ball, And I think you're 32 35 years of experience your financial strength. The thousands of people you've employed dealt with has a lot of credibility. I appreciate that, assuming the smart money says much like in AA four years ago that Trump's gonna lose and I made the comment before that the economic policies Of Joe Biden are not good for the investor, and I'm going to go on the other side of the fence, too. But if that occurs, am I right or wrong? You're probably right. There have been a number of studies in taking a look at the economic policies that the vice president has put together. And one of them projects a 12% decline in the stock market, reflecting a reduction in corporate earnings. This will be a result of a combination of lower corporate profits as a result of higher corporate taxes. As well as greater expenses due to a knee increase in regulation along with questions as to how quickly Americans are going to be able to regain jobs. The vice president, of course, is promoting a $15 minimum wage on a national basis. On. There's an argument as to whether or not that will actually increase incomes or reduce the number of jobs available. So for a variety of those reasons, there is AH, general consensus. There are disagreements for sure. But there's the general consensus. That Donald Trump's tax pro tax plan economic plan etcetera are better for the stock market, then Joe Biden's I always hear Rick saying on Saturday mornings. You can't time the market. It's impossible. In fact, you've given us statistics that over 365 days if you miss the 10 or 12 days every year when the market's up because you're out But over time your investments are going to go down because you nobody in time. The market not even Ric Edelman, however Europe you on that 0.100 per cent. I believe, however, if a few days out, which is maybe end of this week or next week, it's obvious. At the House. The Senate, the presidency will be controlled by Joe Biden. It's obvious Is it time to start paring back your equities? No, it is not. And here's why, when we talk about the studies that reflect the conclusion that Donald Trump's economic and tax proposals are superior for the market than Joe Biden's This isn't Ah light switch. It's not on off. It's not all or nothing. It's relative. In other words, the study's air, saying that the stock market is likely to do better under Trump, then under Biden. That doesn't mean they'll do badly under Biden. It means they simply won't necessarily do as well. So it's not a question of saying Oh, the market's therefore going to crash and I need to get out and protect my money. Not at all. Stocks will likely continue to be the best performing asset class better than alternatives that you confined on DH, therefore continues to remain in your best interest. I'll give you a second reason. Let's even assume that the market does Go in the wrong direction and does decline during a Biden presidency. The Biden presidency is at most eight years and could conceivably be only four years. You're not going to be dead in the next four years or years. You're goingto here. You're going to have a life that goes decades longer. So if that's true investing during a down market if that's what Biden produces, should he win? Uh, that lets you buy shares while their lower and price so post a Biden presidency when we go out 10 years from now, 20 years from now, you'll be thankful that you bought during the down period because that's how you get rich with buying when prices are low. So when that weird Sense. You should hope for abiding presidency and hope that the market goes down to buy stocks on sale because you can't put the money in bonds. You can't put it in a savings account at 12% or less than that. And overtook 1/10 of a percent right. And even if you go into energy stocks, there's some energy stocks like ex Ellie that has maybe a nine or 10% dividend, but depends where your entry prices and Tony Bender just gave me a question. He loves to invest Excel. Lien, XO, Okay, which are a basket of energy and also tech companies. If you're an ex Ellie right now, you're getting like a nine or 10% dividend. And that's unreal relative to what's really true in the market. Why would a smart investor like Tony Bender put a half million dollars in X? L E when he said I'm getting 9 to 10% of my money? Well, why wouldn't more people do that? Because there's a huge risk. There is a one of two things have to happen. Either. The stock price is going to go rise, which would make the yield is percent go down or the dividend has to go down. Two again accomplish the same thing, And if the company's failed to earn enough profits to sustain those dividends, the dividends will be cut. The stock price will fall even further, and that often happens to high dividend paying stocks when they're so dramatically above market. So, Yeah, Enjoy that 9% dividend while you got it. Don't assume you're going to keep it and don't assume that the stock price is going to remain where it is, either you could lose both ways and very quickly And unexpectedly. What else that you're studying the kid. I'm looking to some of the results here that 51% say the 2020 economic crisis is worse in the great recession. 49% don't believe they're ever going to be able to retire. I know some old folks that I played golf with whether it's AH bears Paula Kendall Country Club or, like a Tony Bender belongs to Camargo Club in Indian Hill. That they use their Social Security to pay some of their country club dues. But then the other people that are running around actually have a difficulty because they know they're going to be 75 80 years old and they have to still work. Now I think most Americans in their seventies and I'm in the seventh inning in my life. I hope to play all nine innings hope to go to extra innings. But I'm in the seventh inning and I'm still working because I loved the work and and I love what I do. But a lot of guys in their seventies there are greater that Wal Mart would rather not do that. Do you think a person in their late fifties and sixties needs toe put into their computer? The idea that I'm going to keep working as long as I'm physically able, because my investments will pay off in the future what they've paid off in the past. Well, I'm going to give you two reasons. You just cited one of them, Willie, which is that your investments might not be enough to meet your needs. The other half of the reason is, as you said, why Quit work when you love what you're doing? I love what I'm doing. You people want to stay engaged. They want to participate. They want to contribute to society on one of the fastest ways to cause your death is boredom and loneliness..

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