Congress has passed the latest (and presumably last) round of coronavirus stimulus. The package includes $1,400 checks for many Americans as well as extended unemployment benefits. It also includes billions for airlines which have not been required to do all that much in order to receive tens of billions of federal dollars. What impact will this stimulus have on the economy and what does that mean for the stock market?

Transcript

Samantha Bailey  0:09

Welcome to 7investing Now, a show that teaches you how to take a long term view on investing by better understanding what’s happening in the market now.

Dan Kline  0:19

Good afternoon 7investors and welcome to the Monday edition of 7investing Now. My name is Daniel Brooks Kline and I’m the host of the program. I’m being joined today by Maxx Chatsko and Steve Symington Maxx Did you do anything fun this weekend weekend sort of seemed to me like weekdays light like we all still work a bunch like but like maybe Steve posts a photo that he’s skiing somewhere What was your weekend like?

Maxx Chatsko  0:43

I didn’t do anything fun actually did a lot of work. I’m a grocery shop and I don’t know if that counts as fun anymore

Dan Kline  0:49

In the old world I enjoyed grocery shopping in the new like mix of it. It’s a little bit overwhelming with my vision to be in a grocery store slash I live in Florida so like you’ll have people with like their mask on their head or their their mask around their neck and like not necessarily not as much here in South Florida, but still not great protocol. Steve, I know you went skiing. Did you do anything else fun this weekend?

Steve Symington  1:12

I didn’t go skiing Actually, we decided not to. We did. We did go see Raya and the Last ragon last night with the family. So that was fun.

Dan Kline  1:20

Now that’s a documentary about the last dragon if I remember correctly.

Steve Symington  1:25

Yeah, yes, exactly. That’s that’s exactly what it is. But

Dan Kline  1:29

that’s a Steve, you saw the movie in a theater limited capacity in a pod. What did it feel like being inside a movie theater?

Steve Symington  1:36

That was great. We’ve actually seen a couple since they go our local AMC is already pretty spread out. And they have the lobbies, or the theaters themselves at 40% capacity and they make you place orders at concessions and then bring them to you then and it was great. So yeah, that was a good time.

Dan Kline  1:54

We have a cinema grill near us in in Davenport on our second place where we spent last weekend and we’ll spend next weekend. And I would go The problem is that the movies are out are like Scoob and Tom & Jerry and Ryan the last dragon like these are not movies. My 17 year old son is all that excited to see.

But with that Seven-investors Our top story today this is a big one over the weekend, the 1.9 trillion that is right trillion with a T dollar stimulus package passed. Steve, what are the goodies? What are we all getting? We’re going to talk about what this means for the market. We of course would like your questions and comments as we go. Sorry, Steve stepped on your bit there?

Steve Symington  2:32

No, yes. I this is something we’ve kind of been talking about for the past couple of weeks. And it’s not a whole lot different from what we saw in the house a couple of weeks ago, it will have we will have direct payments of up to $1,400 per individual for most Americans. And Biden is saying that we should receive those payments possibly start receiving those payments by the end of this month because they are looking to actually get this approved on Tuesday.

There will also be a $300 weekly boost to jobless benefits into September unexpensive. The child tax credit for one year also puts new funding into COVID-19 vaccine distribution and testing rental assistance for struggling households, and K 12 schools for reopening costs, and also 14 billion in payroll support for airlines, it seems strange to say also, the third round of federal aid for the airline industry that’s in exchange for not furloughing or cutting workers pay rates through the end of September. And airline contractors were set aside a billion as well. So

Dan Kline  3:37

We’re going to come back to the airline industry. But before we do that, I’d like to get sort of a top level perspective from each of you. We knew this stimulus was coming. We knew this is roughly what it was going to look like it’s still not technically past there, there needs to be a House vote. Because it’s a the reconciliation process means it’s slightly different from what they pass. But that’s a formality should happen on Tuesday.

Dan Kline  4:00

Maxx, you go first, what’s your top line takeaway of what this means for the stock market?

Maxx Chatsko  4:05

Well, I mean, the narrative last week was certainly inflation fears and concerns. So I mean, $1.9 trillion, is a lot of money. And there is such a thing as too much money, right, eventually the bill comes due. So I think this is eventually maybe, you know, doesn’t look like it today. But it is going to add to inflation fears. And it also, you know, might impact our ability to to pass other legislation. I mean, the Biden administration is talking about a big infrastructure bill, there’s different bills being kicked around or ideas for for climate change, you know, bills, so, I mean, those are gonna cost trillions of dollars as well. Are we actually gonna be able to pass those what happens if we do I mean, you know, we’re talking about like, what’s the total cost of all this, going back to last March like $10 trillion. I mean, that is gonna, you know, juice inflation. I think the Federal Reserve is gonna have to break from its timeline. They’re keeping interest rates near zero till 2020. Three. So that is gonna impact what’s going on in stock market.

Dan Kline  5:04

So, Maxx, we don’t talk politics here. And, Steve, I’ll come to you in a second. But what we do talk about is, you know how these bills affect. And what we learn from a political point is just how narrowly divided Congress is. This was not a bipartisan bill, this, this was an exactly party lines bill, where there had to be some sacrifices made in order to get things passed, there’s a bit of an echo if somebody has a has an open mic. But that being said, Steve, your thought, what does this mean to the market?

Steve Symington  5:34

As far as how the, the the stimulus is going to impact the market, and it’s obviously good news for your so called reopening plays, that that’s why we see a lot of these companies, these companies that people perceive as maybe maybe some of your value oriented plays, but also businesses that should benefit from the economic reopening kind of rallying and a lot of these high growth tech stocks falling. But I also don’t think this means the end of high growth tech businesses, they are creating real value, and a lot of their stories were accelerated by the pandemic. And I think we’re gonna see some of the strength coming out. In these these sort of richly valued companies over the next couple of quarters, they’re going to realize that maybe some of them were justified, some of them are definitely overheated, which is why we saw some a lot of kind of high flying stocks pull back but really good news reopening plays, but not the end of high growth tech.

Dan Kline  6:25

Yeah, and I’ll give a good example, and this is a let’s call it soon to IPO soon to SPAC company, though they I don’t think they’ve officially said that I might be wrong. I placed an instacart order today. And it’s not because I can’t go to the grocery store, the grocery store is relatively safe, there’s a whole foods, three quarters of a mile away from me, I simply don’t have time to go. That’s not because of the pandemic ensure instacart has benefited Whole Foods, Amazon has benefited from the pandemic, but we’re not going to stop doing convenient things like I had an infection in my finger and I got a prescription using a tele doc appointment. I’m not going to go like you know what I really like sitting in doctor’s waiting room, I can’t wait to go back to wait three hours for 18 second appointment being surrounded by sick people. So I do think the whole demise of big tech is way overplayed, there might be some things that were more popular than we expected them to be because of the pandemic. But we’re not getting rid of our Disney plus subscription just because we’re allowed to go outside again. So

Maxx Chatsko  7:29

if I could, if I could. Alright, so I think this is what people get wrong. It’s not that these businesses are bad or not growing, it’s that the price for that growth might be wrong. So these businesses might still be doing well, I don’t think they’re gonna fail. I think like Steve said, a lot of trends have been accelerated and pulled forward a year or two or three. But does it make sense to pay, you know, x times sales, we wouldn’t have paid that 12 or 18 months ago. So I think that’s what’s missing. It’s not that the businesses are bad, it’s at the price that you’re paying for that growth might be bad.

Dan Kline  8:01

I think it’s gonna gonna be a question of timeline, when you look at some of these very inflated stocks, like, I would argue that say, zoom 10 years from now will be significantly bigger than it is now. But are you going to catch up to that in three years, in five years, in seven years, so it really depends on your appetite, if you look at a company and fundamentally believe it has the ability to branch out to be much, much bigger, just be prepared for the fact that it might get punished. You know, look, I own a very small amount of Carnival Cruise Line and Royal Caribbean stock carnivals up almost 100%. Since I bought it in October, there is nothing to justify that. On the other hand, there are some retail stocks that are down during that time period that I’ve actually put up really good numbers. So you really need to zoom out and look at the long term picture. We’re going to get to your questions. We’re going to get to your comments. But guys with this, this last bit of stimulus, we hope this is the last necessary stimulus because that will mean we’re out of this. Do you expect a summer recovery? Steve, I, you know, add in vaccines being more widely available,

Steve Symington  9:03

um, a summer recovery? Yeah, I do. I think there’s been so much pessimism, the last like, year and a half that I feel like, you know, and I and I’m admittedly sort of this perennial optimist, like, Oh, yeah, you know, it’d be great, you know, the next couple of months from now, but I really do think, you know, we’re kind of down that homestretch. And, you know, barring some absurd variant that comes in and, and kind of launches us back into the stone age’s. I think we’re on a fantastic trajectory. And, and I think, you know, the economy is sort of poised, sitting on this inflection point. And, and I think we’re gonna we’re gonna see pretty ferocious recovery over the next several months, as we sort of exit this because I think everyone’s eager to not only get you know, kind of back to normal, but we’re gonna have massive stimulus coming in and I mean, think about this. A family of Five is going to have over seven grand coming in. And, and a lot of that’s going to go into the stock market, you know, some of these younger people, you see surveys, but a lot of it’s going to go, you know, toward, you know, it’s it’s more targeted than before it’s going to go toward things that people need. And and there’s going to be a lot of money going into the economy that way. And I think it will fuel that recovery.

Dan Kline  10:25

Steve, we all saw that same story that said, you know, 52% of people who are getting stimulus checks are going to invest in the stock market, do you think that’s a little bit inflated, because I know, income wise, I’m not getting any payments, I most people who are relatively well off for this particular route are getting absolutely zero. So I feel like I don’t know a lot of money is going to be spent on food and supplies and maybe clothing and things we need to get back to, you know, we’ve all worn sweatpants for a year, we might we might need new

Steve Symington  10:55

car repairs and all that good stuff. I mean, there’s a lot of that that’s going to happen. But I mean, the when we look at the the income limits, you know, the top end, for a married couple 150,000 is what it’s going to be. And it’s going to phase completely out by 160. This time. So I think that reduced the amount of people, the number of people Forgive me, that will receive the stimulus by about 5%. Which, you know, relatively modest change, I think, but I think it is, it’s better targeted this time, because it doesn’t phase out up to $200,000. But 75,000, in certain areas of the country really isn’t that much money. And, you know, when you talk about a single filer, or someone who’s married filing or head of household or something, you know, it’s not it’s not that much. And I think the people who are getting it are the people who are going to need it. But there’s a group of people who don’t necessarily need it, who will still be receiving it. And they’re going to have some some money to spend on things that aren’t necessities.

Dan Kline  11:52

So had I been eligible, I would have spent it recklessly so US government, I would have been funding the economy, I would have been buying dinner, there would have been rounds of Drinks on me, I am looking forward to a more normal world, we’re going to get to airlines in a second. But before we do that, Maxx here at your are biotech person on this particular show. I’m pretty encouraged by what we’re seeing with vaccines, we’re starting to see lots of states, lower the age requirements here in Florida. It’s a you know, anybody that has a doctor’s note that they’re vulnerable. And here’s a secret, go to any teladoc. And they’ll give you a doctor’s note like like, this is not it is not particularly difficult to get a vaccine and it’s going to get looser and looser. Do you think enough of the country, despite what we’re seeing, is going to get the vaccine so we actually do hit herd immunity?

Maxx Chatsko  12:42

Yeah, I think I mean, I’m encouraged by this, I think it’s pretty much best case scenario at this point where we’re at. And we’re gonna get to a point like, this is crazy to think about, but, you know, by the end of the summer, we’re the United States gonna have too many vaccines, you know, we’re gonna be shipping. We’re gonna be shipping to other countries. So kind of hard to think about now. Like, I mean, I’m waiting for my vaccine might be one of the last ones on the seven investing team here. But uh, you know, I’ll get it, I’m not worried about it. And yeah, in a few months, we’re gonna have too many as a country. So just think about that, you know, we’re gonna be shipping them all over the place.

Dan Kline  13:17

As of this afternoon, 50% of the seven investing advisor team will have at least one shot of vaccine. So that that is encouraging. And it’s all for different reasons. I volunteered Matt as a police officer working with vulnerable populations. Steve has a preschool in his house, we have all sorts of different legal none of us, none of us cut the line. None of us did anything wrong. Maxx is waiting because he’s young and healthy. And Maxx actually could have had the vaccine and chose not to not because he doesn’t want to, because he didn’t want to cut his place in line. So that being said, I think we’re weeks away from widespread availability, we’re seeing the shipment numbers go up dramatically.

We’re even seeing here in Florida, even places, being a lot more liberal about their leftover policy. You know, if you’re waiting around at night, there’s a decent chance that they have a few doses left, because they’ve already gotten their employees at the grocery stores and the CVS is in places like that. We’re going to talk airlines and stimulus in a minute. But before we do that, Sam Bailey, I want to share what we’re going to do for the rest of the show. Do you have the big board to share? Okay, so we’re talking the stimulus bill right now, after that, I’m going to talk and I can’t even believe I’m saying this could GameStop make a digital pivot. Max is going to talk about electric utilities and things are not going well for them. Steve is going to talk about NF T’s that is non fungible tokens and a $2.5 million tweet, it’s actually bids starting at 2.5 million. Then in the homestretch, we’re going to talk how to balance your portfolio. And then for the finisher, we’re going to talk about the recovery of summer travel. As we do all of this.

We’re of course going to take your questions. I see some good ones. I see some very specific ones, guys, if if you want any of the very specific ones, certainly share it in the private chat, and we’ll get to those in Between segments, we’ll we’ll take some questions about the stimulus and the market at the end of what we’re talking about. But guys, I’m a little bit dismayed to see how much money we’ve put into airlines because I was actually kind of in favor of letting every airline except southwest and maybe Alaska Airlines go out of business. And because they weren’t going to go out of business, they would go bankrupt, and there’d be different management, and there’d be people who didn’t waste a lot of money. But basically, airlines have have held up their sort of necessary status as a way to just get endless money. Steve, am I missing something here?

Maxx Chatsko  15:38

You’re on mute buddy.

Dan Kline  15:40

Oh, I thought he was doing a dramatic pause.

Steve Symington  15:43

My time. The No, I just, um, you they, they did need the money. You know, his airlines didn’t need this. I think shareholders are under estimating just how much longer This is going to take to kind of recoup for them. You know, there’s a reason Buffett sold airlines back in May. or whenever it was, it was late April, or may, or young people were like, Oh, he missed the rally. And they rallied afterward and then crash right back down. And then they kind of come back. But he made a great point at the time that airlines were, you know, their, their debt. And by all means, you know, that they’re going to have to repay, and that eventually comes out of shareholders pockets. And they weren’t fantastic businesses before the pandemic anyway.

You know, they were they were all right, I guess, you know, there was nothing, but most of them were. No, yeah. And it was it was nothing so compelling that I felt the need to add them to my own portfolio. And it’s a little surprised that Buffett owned them in the first place. But it was just, yeah, I I’m not compelled. And you might get sort of some weird momentum swing because people are buying them. Because they assume it’s an easy reopening play. But as far as long term sustainability for, you know, and consistent ability to create shareholder value, kind of myth. And that’s kind of where I find myself sitting with.

Dan Kline  17:18

I’ll throw the final question here to Maxx Maxx, do you think there should have been more strings attached? The only string was basically no layoffs? And This to me is I use the word appalling. I can’t think of a worse word. It’s awful.

Maxx Chatsko  17:29

Yeah. And look at like in the European Union, right? They have strings attached to their bailouts for airlines specifically. So they said, Yeah, we’ll give you all this money, but we’re gonna tie it to emissions reductions over the long haul. And every airline said, Okay, we’ll do it. So society gets some benefit, and airlines get money, right. But in the end, everybody kind of wins. And here in the US, we just kind of like, you know, all moneybags, Uncle Sam just dishing out, you know, $100 bills everywhere. You know, and so it is a little ridiculous. I think there should be some strings attached. And just to add quickly, to you know, what, what Steve was saying to,

I think airlines are gonna take a little bit longer to recover, I think that is under appreciated. And also, if you look at what’s going on in energy markets, or oil, I think oil prices and gas prices and jet fuel prices, they’re going to get crazy this year. Like I think it’s possible that in a few months, that’s a narrative that emerges as something that’s maybe putting a lid on some of this economic recovery. I mean, oil prices right now are like $7 a barrel, they’re still keeping a lid on production globally. We might see $100 a barrel sometime it feels 21 no one’s really talking about that now, but you know, that could be a could be a pretty big narrative in the next few months here.

Dan Kline  18:42

There’s also a lot of oil production that could be brought back online as prices go up.

Maxx Chatsko  18:47

Sooil in the United States with shale that can come on much more quickly than in other parts of the world. So that could end up being another benefit to the United States and we’ll get our exports back on track. But still, I think you know, we’re gonna see some some pretty expensive oil and gas prices here this year.

Dan Kline  19:03

I am prepared for that. I just bought a Prius. I got stunning. miles. My first long trip with it my gas, I use 2.8 gallons of gas going about 170 miles, which is absolutely unbelievable better than advertised. We’re going to take a couple of your questions before we get to what we’re watching Manisha game. He says apologies if you’ve talked about this already. Are we all the noise and chatter around what could happen to the market inflation corrections, etc. How do you keep yourself grounded in these times? I kind of tune out all this noise except it’s what I do for a living so I don’t have the option of like not checking CNBC or whatever business site Steve, you can go first. How do you tune out the noise?

Steve Symington  19:47

It’s that Yeah, I’d say the same thing. It’s sort of like we watch this for a living but you don’t need to, if you’re an investor, a lot of a lot of times you’ll find our takeaway is this isn’t a big deal as it pertains to businesses, high quality businesses that are capable of allocating their capital and consistently creating shareholder value over the long term. Most of the time, these kind of near term things, you know, in inflation, what the feds doing who’s in the white house doesn’t really matter. And you know, you’re gonna get some, some near term swings. But that’s kind of why you focus on just finding in buying shares of great businesses that will thrive no matter what. And, and really, as far as keeping yourself grounded, it’s you know, that’s sort of the key to being a great investor is just so many,

Dan Kline  20:38

there’s so much time in action. This isn’t a basketball game, it often has the emotion of a basketball game where it’s up and it’s down, your team’s down 10 points, they’re up 20 points. But here’s the reality, there’s no time limit. So if you played basketball forever, the better team would eventually win. And I know that’s a weird analogy. But if you own Disney, or Costco, or Microsoft, or whatever, these great companies that maybe have been up and down a little bit, look at the 10 year chart, look at the 20 year chart, there’s going to be dips, but they’re going to go up if you if you’re worried about this, go back and watch Friday’s edition of seven investing that we really spent a lot of time dealing with this. I’ll throw the next one that to you, Maxx and we’re gonna come back to Jay Z’s question on electric batteries towards the end of the show. But Sunday David x COVID ated the internet companies because we couldn’t go outside on the contrary with the ever increasing cybersecurity threats. Do you ever see the internet self being shut down for a period in the future? Dear God, you can’t shut down the internet. All my stuff’s on the internet. Maxx your thoughts here? Yeah, I

Maxx Chatsko  21:40

don’t think the internet’s gonna get shut down. There’s obviously some, you know, increasing geopolitical risks or however you want to say right now look at the big powers of the world are all ramping up their cyber, you know, security, cyber threat, all that stuff. Now, the internet’s gonna go down. I mean, if the internet goes down, we have some bigger problems to worry about, you know, there’s there’s a Jets get in the air and things like that. So hopefully that doesn’t happen.

Dan Kline  22:06

Final question we’ll take in this section is asked do you think airlines are great businesses in the short run? We don’t make short run calls. But there, it’s definitely not a great business. Might the stock price go up? Yeah, airlines might see a rise. Now

Southwest is a really well run airline that I’ve dug into. And I think I may actually buy some Southwest because I think they have the capital to take over routes and slots and other things that other airlines make short term decisions on getting rid of that said, it’s such a capital intensive business. I’m not a giant fan, like we’ve talked about how much I love going to casinos. I don’t invest in casinos, because you know what, they have to build casinos, they’re really expensive. And they have to redo them every 10 years, like every 10 years, you go to, you know, Harrah’s or the link or whatever it is, and they have to redo all the rooms that is not cheap. Steve Maxx anything you want to weigh in to close out on airlines here?

Steve Symington  22:57

No, I think and it’s worth noting, we spent a little bit of time on airlines about maybe 10 minutes ago. So you can rewind this live stream and take a look at our comments on them. But we did touch on that just a little bit. Not then this is all around. But with some exceptions.

Dan Kline  23:13

Somewhere after the show, it’s usually about three or four hours after but there will be a full transcript that will be searchable on our site. It depends. We use a software product that takes a couple hours, then I go through it to clean it up. It’s not always the same day, but it’s usually the same day. And of course, we also have the amazing power of Yext on our site, what is Yext? It’s contextual search. So if you want to know anything we’ve talked about, you’re like, I think Dan talked about that three weeks ago on 7investing Mow you go to our site, you type it in, and there’s a really solid chance that you’re gonna find it. It’s a it’s still a work in progress. But it is really exciting. That is a benefit for everyone because these transcripts are of course on the free side of our site. But if you’re a member, if you join at seven investing, you’re able to access all of our paid content using that same contextual search. So you might find Oh, wow, I was interested in that company. Steve wrote something about that company or it was a recommendation I didn’t even notice because it was six months ago. So if you’d like to become a member is $49 a month or $399 a year Steve Simon said Where do they go to sign up

Steve Symington  24:20

Seveninvesting.com/subscribe. Pretty straightforward. You have any questions? You can also send us a note (info@7investing.com) 7inv, you can see what we have to offer and you get access to all of our premium content. And we love talking with our subscribers about some of the specific questions about our recommendations that we sometimes get.

Dan Kline  24:42

We’re the best value in investing when things are scary. You want to be a seven investing member. Here’s the thing. If I didn’t work here, I’d be a seven investing member because it’s valuable to here. I’m not buying this company for today. I’m not buying this company because of what it’s going to do during or after the pandemic. This company because I have researched it top to bottom, I believe in management, I believe in strategy, I believe in what they’re going to do long term, you’re not getting better, more thought out investing advice anywhere else on the internet, please don’t take down the internet. That is also where most of the 7investing stuff lives.

Let’s move on to what we’re watching. I don’t usually do one of these themes. So I want to talk for a few minutes here and feel free to interject. But I hate to get involved in this whole GameStop nonsense. But I will say I am not a fundamental believer in GameStop ability to pivot its business. So one of the things people who pretend they’re not just buying this as a momentum stock that they’re buying it because of fundamentals is that they believe that GameStop is going to be able to pivot to a digital business. So woke up this morning, and GameStop shares were up 11% in pre market trading. Why is that? Because hewy co founder Ryan, Ryan Cohen has been added to he’s on the board he’s been added to a special committee to chair their digital transformation. Here’s the problem. Steve, do you have a video game console? Do you do have an Xbox in the house or a PlayStation?

Steve Symington  26:05

Yeah, we’ve got a switch in the Xbox One

Dan Kline  26:08

I have the new Xbox, PlayStation 4 and a Switch. And do you know how I get games for those? Well, I download them. And on the new Xbox, which I bought on the Microsoft, you know, you pay $28 a month or whatever it is, I get access to hundreds of games, including all the EA games. So if you think GameStop can pivot to digital, what exactly is it, they’re digitally going to sell.

And we’ll talk about NF T’s because there is some possibility there. But I don’t need a middleman to sell me video games. so chewy is a success story not because Ryan Cohen is a visionary. But because Amazon didn’t have pet toys during the pandemic. Chewie is a fine company. They have amazing customer service that people stay members once they’re there. But I was an Amazon member, I wasn’t going to order kitty litter on chewy before the pandemic. But when Amazon said we’re not really going to prioritize certain things, a lot of people had to go to chewy, that was great for their business. This was not some sort of brilliant modeling. Maxx am I missing something? If the core product at gamestop is games, and I don’t need to buy games from them in the store or digitally? What exactly is this pivot gonna look like? Are they going to show like old cartoons? Like it doesn’t make any sense to me?

Maxx Chatsko  27:20

Yeah, no, you’re right. I mean, actually, the disk drive on my PlayStation four broke. So I only download games. And now with like the newer consoles with solid state drives, you can download things in like ridiculously short times. So I mean, that’s the future, you’re not gonna have game libraries and physical, you know, cases and things, it’s going to be all, you know, on your console digitally. So I agree with you.

Dan Kline  27:43

And even you know, people who make a case for the physical store, because I go into GameStop every time I’m in a mall. But if I find a game on GameStop, that for some reason I want to buy maybe it’s an old, nostalgic, something that I’m not getting for free, I still go home and have to spend like three or four hours downloading updated content. Now that’s improved as my internet connections have improved, and we’re getting fiber. So that should even be better here. But for all of you who read this, and they’re like, Oh, this digital leader is taking over their pivot, there needs to be a market to pivot to and in this case, I don’t think there is so what’s my advice? don’t invest in GameStop if you own GameStop be happy that it’s up and sell it. Maxx What is your oak Steve Go ahead, jump in feel

Steve Symington  28:25

One more thing to add. Um, I think I I’d be remiss if I didn’t note, you know that there could be a little bit of underestimation going on with the potential size of digital markets that it’s considering tackling whether it will succeed to that end or those ends is, is completely different story.

But I mean, we’re talking, you know, e commerce and eSports in particular, you know, I wouldn’t be surprised if we see, you know, they come out and and look at like some streaming services, you know, I saw they hired some AWS engineers, and you know, that was those sort of some of the news, but not just digital content. But you know, community stuff, and online trade ins and eSports and game streaming and that kind of stuff. There are options, but it’s going to be a tough road to hoe for GameStop. So we’ll see it but maybe they’ll just wrong.

Dan Kline  29:25

You’re competing with Twitch, you’re competing with YouTube, to an extent you’re competing with the the Apple subscription service. I agree that my notes here it says social media twitch competitor, that is a really difficult niche to find and look, if GameStop transformed its stores into experiential space. Maybe they could extend that so you’re a member of kind of a club and you want to play that at home.

But they’re very small stores. They’re not big footprints and most malls, at least most of the malls I’ve been into. Now have those sort of pop up you know virtual reality headset. Gaming spaces. I think that ship may have sailed. But we’re gonna move on a little bit. Max, you want to talk about electric utility stocks. They’re getting crushed. And there’s good reason for that. Right?

Maxx Chatsko  30:11

Yeah, so, electric utilities have been just getting hammered in the last maybe three and a half months or so. And a lot of this has to do with, again, concerns over inflation. So historically speaking, this does kind of make sense. You know, when inflation increases, usually interest rates increase as well. And in during inflationary periods, you know, prices are rising, labor, wages are rising. So labor expenses are increasing. Now as an electric utility in the United States, very heavily regulated outside of Texas, sorry, Texas. I got to dig a Texas anytime I can.

You know, so like when the price of your inputs, your fuels increased, right, natural gas costs go up, coal prices go up, you have to eat that cost, electric utilities can’t increase the price of electricity, because the price of electricity set by public utilities Commission’s only so many years, you know, so it’s not a good time for electric utilities, historically speaking. Additionally, if interest rates are rising, you know, that makes the cost of debt go up. And you know, electric utilities are some of the most capital intensive businesses on the planet. So historically speaking, this does kind of make sense why Wall Street is concerned,

Dan Kline  31:25

Maxx were these ever good investments, it seems to me like, there’s just so much volatility hear that, I don’t know, it seems really difficult to invest in utilities.

Maxx Chatsko  31:35

Well, so electric utilities are actually can be some of the best investments you make, a lot of them are the most the best well run, utilities do tend to beat the s&p 500. When you look at total returns, a lot of them pay very nice dividends. But all of this is, you know, based on where they are in the country. And I think actually, the markets getting a lot of this wrong, based on you know, the historical comparisons are no longer valid. Again, you have to look at this on a case by case basis. But there’s a lot of utilities that have ridiculous shares in their power mix of renewables.

So the cost of the wind and the cost of the sun don’t go up when inflation rises, right. There’s no fuel expenses for these modern renewables. So you’re seeing a lot of these expenses, roll off the income statement all together. So I think inflationary concerns are going to be much less of a risk going forward for some of the best position utilities. And additionally, there’s this new thing that’s forming a new market for something called Green bonds. So you know, everybody and Steve Second Uncle wants to own green bonds, because they want to be able to brag about their, you know, climate bond funds, right. So the market for green bonds, the interest rates, you can get on a green bond is always lower than what’s available in the traditional markets. So electric utilities can get green bonds, some of these are issued by states, you know, at much more favorable prices, and then they’re called Green bonds, because you’re supposed to use the money in the capital to invest in renewable energy projects or clean energy projects, utilities are also gonna have to start building out a lot of electric vehicle charging infrastructure, they need more supply to be able to meet the demand for electric vehicles, right?

That’s a whole new sudden, like once in a lifetime growth opportunity for electric utilities. So again, the combination of moving to renewables, which don’t have fuel expenses, and then the emergence of green bonds, which are lower cost forms of debt, I think the markets getting a lot of this wrong, just by looking at historical comparisons, they have to look at how the world’s changing. So I think if you look at some of the best run electric utilities, they’ve taken a big hit recently. Some of them are a little bit expensive. But over the long run, I mean, I think there’s some good bargains that are out there.

Dan Kline  33:43

So Maxx One of the things we have in the document here in the script, here is a question from Cheyenne Collimate. And she said, Volvo said they’re going 100% Electric by 2000 32,030. Sounds like it’s a long time from now. It is less than a decade away. Other companies are making similar pledges, GM just released their electric Hummer trucks. She says it looks way better than the Tesla cybertruck that is not a compliment. It is not hard to look better than the Tesla cybertruck. Any thoughts on who is best positioned to compete against Tesla in the E car market? Maxx you put this in? So I’m assuming you want to answer it?

Maxx Chatsko  34:17

I did not put the saying I don’t think but I’ll answer it. So I actually think that narrative is not correct, right? Everyone talks about competing with Tesla, Tesla is gonna be fine. Whether it’s the only electric vehicle manufacturer or everyone’s making electric vehicles, right, I think that’s pretty well established. And look, everyone every major automaker has plans to go full electric or mostly electric. That’s not changing and it’s not really going to change much for Tesla.

Tesla’s still gonna sell Tesla’s people are still gonna want to own and buy Tesla’s it has all these other things, its ecosystem with the power wall, although that maybe doesn’t make so much sense right now. But maybe by 2030, you can get solar, just the different tech enabled services that come with a Tesla that you know, Ford or Volvo might not have But yeah, the market is going towards, you know, electric vehicles. And that doesn’t really change anything for any of these these automakers? I don’t think and

Dan Kline  35:09

I think the bigger question is which legacy automakers aren’t going to succeed in electric and market share, some of that will go to Tesla. But if it’s Volvo that does it best if it’s Toyota that does it best. If it’s GM that does it best, they’ll take share from each other like I bought a Prius, because when I read every single thing ever written about electric cars, that clearly seemed to me like the most reliable, most efficient hybrid that was going to need the least repairs. Admittedly I based a lot of that on Consumer Reports.

Let us move on to Steve’s while we’re watching Steve and jack Dorsey, he is the CEO of Twitter. He is the CEO of square I picture him changing outfits every time he he switches back between the companies but that’s that’s an all Brady Bunch plot. He probably does not do that. He’s offering to sell the first tweet I don’t even know what was said in the first week as a non fungible token or NF T. Please explain. I don’t know what many of those words mean.

Steve Symington  36:04

It was an old tweet from like 2006 and it said setting up my Twitter It was like Tw t RR something like that. It was the very first tweet ever. So Sir, what started all this right? And Twitter’s obviously huge. Now, but I guess first, you know, we talked about, he’s selling this as a non fungible token or NFT. You’re gonna hear about NF T’s a lot more. In the coming years.

These are unique digital objects. So hence the non fungible part right. By comparison, most cryptocurrencies are fungible assets, meaning their units are all equal. So it’s like dollars $2 or one bitcoin equals another Bitcoin. They’re all the same value. They but NF T’s can’t be exchanged for another identical item. They’re unique. They’re one of a kind digital assets. So endorsees case, he’s literally selling the world’s first tweet, and obvious one of a kind digital item. And he’s essentially giving the highest bidder trackable ownership of the tweet, which will be recorded on a blockchain digital ledger. Now, this is the same thing where people store you know, their their Bitcoin portfolio or whatever, or aetherium, whatever they own, is going to be stored on this blockchain digital ledger that is immutable, right, you can’t change this.

And, you know, each, again, we have to reiterate, each NFT is unique, it can’t be duplicated. And this sort of makes them kind of rare collector’s items that no one else can claim. And right now, the current high bid, I think, is from the CEO of bridge, Oracle, his name’s seen as stavi high bids. 2.5 million right now. And I really do think you know, that this is the start of broader adoption and acceptance of nst nF T’s is a viable way to offer and claim claim ownership of digital assets. And really, the repercussions are going to be wide and far reaching as it pertains to people’s ability to monetize digital assets.

Dan Kline  38:03

Steve, can I bet on the second tweet ever, which was someone trolling the first person and calling them one political insult or another? You’re actually starting to see the sports leagues use this, you know, so maybe you are the only person who owns footage of LeBron James, you know, I don’t know, you know, dunking while while wearing a suit of armor or whatever ridiculous thing it is. Is this the start of a new collectibles market? And I asked that, Steve, because sports collectibles are notoriously finicky a card that might be worth a million dollars today might be worth $50.10 years from now. Yeah. Does this have that kind of collectibles market risk?

Steve Symington  38:40

I think it’s, I think it’s bigger, both on the risk and its reach, you know, we’re seeing this apply to artwork, digital artwork that people are doing in I think Kings of Leon put out an album or something that’s going to be sold as an NFT, where only one person will be able to actually claim ownership, of course, you know, you’ll have sort of, you know, you can go watch those videos on YouTube. But you can’t say, I own this, this is mine, you know, who owns it, this guy, because I put in a $2.5 million bet or whatever. And that’s, it’s sort of, you know, it seems silly to people today to say like,

Oh, you own like, digital asset, but how many people you know, 15 years ago would have said like cryptocurrencies you know, Bitcoin worth $50,000. Like, but and yeah, there’s gonna be a lot of risk. And there’s a lot of risk that people are gonna overpay for things that they’re very, you know, some like anime like NFT that someone is like, totally hardcore fan. And, you know, nobody else thinks it’s worth the $5 million. They paid for it, like, of course, but you’re also gonna see people you know, probably telling ridiculous stories about paying, you know, 130 bucks for some, some tweet.

And it’s interesting if you go look at jack Dorsey’s tweet. Shortly afterward, he posted a link to I think it’s called valuables by sent or something a platform where you can buy NFT’s and one of the other Tweets that the fellow who currently has the high bid on jack Dorsey’s very earthy first tweet, ever also, he’s been buying up other tweets that he thinks are interesting. And one of them he paid like 138 bucks for. So it’s kind of tempting to be like, hey, let’s throw this out and see if I can make 15 $100 on this Tweet, you know, but it’s gonna be really interesting to watch how people can monetize digital assets and NFT’s are their thing. And actually, an article from Wall Street Journal this morning, pointed out the NFT market was worth I think it was like 338 million, at least in transition

Dan Kline  40:37

up from like, 40 million in 2000. Still,

Steve Symington  40:39

I mean, we’re talking about it, you know, eight fold increase in transactions. And I think it’s only going to get crazier from here. So

Dan Kline  40:47

I think the art market is really the good comparison here. Because if I buy a unique piece of artwork, whether it’s for $100 or $20 million, it’s not really about the resale value. It’s about the joy I get from that artwork. Like, you know, I have some pieces of art, whether they were done by my uncle Howard, who is an artist, or friends of mine, who’ve done things that it’s not what they’re worth, I’m not going to sell them, it’s that they’re on my wall, and I enjoy them. I think that’s what some of this is going to be I think you’re also going to see sort of a new type of collectible. Like go to the famous tweet museum where you’re gonna get access to, you know, unbelievable tweets. I think there’s gonna be all sorts of uses for this. If you’re interested in NF. Ts. We’re actually going to talk more about this with Simon Erickson on Wednesday show. We also have a podcast coming I won’t say which day because I’m not entirely sure. But we’re gonna have a podcast coming I believe, this week that gets really into the NFT. Market. Up Steve jump ahead.

Steve Symington  41:43

Yeah. And and On a related note, actually, Ash who in a previous comment on our YouTube stream here just said just subscribe to your paid service, smiley face welcome ash to our paid service. He also asked, Are you guys bullish on cryptocurrencies? We have a partnership with a company called crypto EQ, that’s crypto eq.io. And we do podcast with them once a month as well. So as for crypto questions, we focus most on equity securities in the stock market side. We let them the experts in cryptocurrencies kind of answer those questions. So maybe check them out and listen to that podcast coming up as well.

Dan Kline  42:17

Steve, that ties in incredibly well, it was like you knew we were doing a segue into the homestretch. Because here’s the question of the homestretch. And this comes from Scott, I’m not going to read the whole email, but he wants to know, how do you balance your portfolio? And he doesn’t just mean stocks? He means do you hold on to cash? Do you have gold?

Do you have real estate holdings, whatever it is, and I will say I’ll go very quickly first, then I’ll go to Steve, then I’ll go to Maxx, I will say I have a portion of money I invest every week, I have money automatically transferred in. And I consider that separate from anything else, I own a second piece of property which we own outright that I consider more a bank than an investment, it’s, it is worth a little more than we paid for it. But we’ve probably spent that money hard to factor in the enjoyment we’ve gotten out of using it. So I consider that more of like a hedge against cash type. But in general, I don’t own gold, or crypto or any sort of I own shares of good companies that I plan to hold forever. I suspect that’s going to be true of both of you. But you may also have some hedges, Steve, you’re up first.

Steve Symington  43:20

I don’t hedge at all, you know, you know, I I think as far as kind of allocating money, you know, it’s it’s a good idea to, you know, max out your retirement avenues, if you can, your Roth IRA and your traditional IRAs or 401k, if you have access to it, also taxable brokerage accounts. And, you know, really just for me, it’s about buying shares of great businesses, holding them over the long term and watching that value compound. And I think I can do enough diversification when it comes to maybe biotech or kind of value oriented insurance stocks or high growth tech stocks, that I’m not really concerned about doing hedges, I don’t own gold, I’ve never done that. And I haven’t really started personally dabbling in crypto because I have my hands full with the, you know, equity securities market anyway. And really, you know, that that’ll probably change as I see opportunity there. But I’m not particularly concerned with with hedging in particular. And I can balance my portfolio well across different types of equities.

Dan Kline  44:26

I consider my hedges and again, we’ve talked about this many times, I’m a little bit older than than everybody else in the team. I consider like owning Costco stock ehedg, like Costco is not going to collapse. I consider it Microsoft ahead. So a lot of my portfolio is fairly conservative, and I buy shares of some of the risky things you guys recommend, as a way to almost hedge against my own conservativeness match your answer here.

Maxx Chatsko  44:52

So we can see the full question. So he also asked about, you know, if you guys do certain budget strategies, and he said he feels that if he can better save and allocate then You can also better accumulate wealth in his portfolio. So one thing that’s made a huge difference to me and I’m 30 years old, you know, I’m the youngest one here, not bragging, but you know. So one thing that I’ve done in like the my late 20s, I started doing something in my monthly budget called annualized expenses. And it’s exactly what it sounds like, right? So I take certain expenses, I know come up throughout the year, or sometimes every two years, right, different subscriptions I have that I pay annually. Or like car insurance, I pay once every six months, I paid less than if I paid monthly. So I know that expenses coming up every six months, but every month, I put 1/6 of that away in a special bank account. I also do this for things that are a little less predictable. Like, I know, I have certain amounts of car maintenance that come up, right? You don’t need new tires every year. But you know, you need new tires every, you know, 40,000 miles or so. So I put money away every month for car maintenance, and even like appliances, right, Dan? I mean, you’re always buying laptops, are you your wife, your neighbor, everybody, right?

Dan Kline  46:00

So there’s nine of them in my house right now, I believe we only own seven of those nine, though.

Maxx Chatsko  46:06

So you know, tech edges are gonna fail or the battery’s gonna go or whatever, something new and shiny comes out. So I put money away for that as well. So every month I put away a certain amount of money in all these different categories as annualized expenses. And then when that expense comes up, the money’s paid for I want to put on a credit card, I’m not tempted to dig into my emergency fund, so I don’t have to worry about it. And that doesn’t make me you know, put less money in my portfolio one month, because I had to pay car insurance this month, right. So the concept of annual expenses was one of the most important things I’ve done in my monthly budgeting, that’s also had these ripple effects in terms of how I put money away for, you know, my portfolio,

Dan Kline  46:46

Take it to Maxx to be a step more organized than the rest of us because I essentially do it up. But I just mentally think of it is my gonna need a new roof fund. Because when I was younger, when we didn’t have as much money when you know, we were struggling, you’d buy a house and you’d go at some point, I’m gonna need a roof. And that’s a terrifying expense, you know, it can be a $12,000 to buy a new roof. Well, now I just go with the assumption that I don’t know what’s going to go wrong. We’re living in a rental at the moment.

So if something breaks here, that’s not an issue. But we don’t know if a car is going to break down. We don’t know if there’s going to be a dental emergency, we don’t know if something is going to go wrong in our other house, whatever it is, I just always assume there’s going to be a major expense over the course of a couple years. And we’ve talked about this when we bought our vacation property, we had it checked out and we knew in the first three years we owned it, we would need an air conditioner, and a new roof. What we did not know is that a storm would hit 31 days after we bought it. I say 31 because our insurance bound at 30 days. So we did get some insurance money for the roof, but that my roof would go and that while I was fixing the roof, my AC which was fine when I got it checked out would die. So I planned on spending about $12,000 in three years, and I spent it in 32 days.

So the good news is the converse happens. I budgeted that money I spent the money, it is very unlikely I would need a new roof or air conditioner. In fact, there’s some warranties involved in both cases, unless something abnormal happened. We’re going to hit our finisher in a minute or two. Before we do that, Maxx, I’m going to ask you to cue up Jay Z’s question and read it to the audience. And if you have any last minute questions you’d like to to ask us feel free to try to get them in but Maxx je had a question on batteries he wanted to answer.

Maxx Chatsko  48:32

Yeah, the very beginning. All right, he asked the question, random questions. Since we’re talking about potential IPO and tech, Any word on Redwood going public, it’s a battery recycling company run by former Tesla exact, so I don’t have any information about when it goes public. But I will say the idea of recycling batteries sounds like it’s a massive opportunity. But there’s actually not a whole lot of opportunity or reason to recycle lithium ion batteries.

Lithium is like one of the most abundant things on the planet, we have way too much of it, we keep finding more of it. There’s more in the United States, for instance, that we’re not currently mining at all, there’s some companies working on that. And a lot of the, you know, more expensive metals that are in there and trace amounts and battery chemistries are constantly changing. So we’re using less cobalt going forward, we’re gonna be using less nickel. You know, when solid state batteries come out, they’re gonna use even stranger materials on the periodic table. And the ultimate chemistry, like the ideal chemistry is one that uses these abundant materials in almost nothing else. So this, this idea of recycling batteries. I know it sounds like it’s a huge opportunity.

But it’s probably not as future proof as you think. And it might not actually pan out quite as well. So I would just maybe be a little more cautious there. Right. There’s this this goes in I always talk about this, but there’s a lot of these good stories that come out, especially in this market, right. I mean, we could start a bakery that you know, a digital bakery and SPAC it tomorrow and we’d probably make a bunch of money if we had a really good website and some cool investor slides. So everyone’s really familiar with the bullish case of a lot of these companies. But there’s not a whole lot of objectivity sometimes in some of these conversations, so investors need to be a little more careful. I think. I bake

Dan Kline  50:10

an excellent digital muffin. I was actually at Disney Springs over the weekend. And there’s apparently a new cookie store there that has a four or five hour wait, unless the cookie has the chance of like being worth a million dollars. I don’t care what the cookie is. I’m not waiting for four or five hours for a cookie.

Steve Symington  50:28

Can we? Can we put the cookies on the NFT? Could we do that?

Dan Kline  50:31

We could and I’m sure there will be  investing NFT? No, there will not be because we have one product that is our picks each month our membership $49 a month or $399 a year, there are no upsells there are no more expensive new services. It is just and I say just that is not doing justice for what you’re getting our seven most highest conviction stock picks each month, access to us in member calls all sorts of great things before we hit the finisher. Steve, I see a question from my longtime friend, Chris Morley. Let’s close out with that. Why don’t you jump in with it?

Steve Symington  51:07

Yeah, so he says this, pertaining to our conversations about IRAs and stuff. This begs a question for me, is there an alternative to the Roth IRA for people whose income is higher than the cap for contributing to something like that? Yes, there are a couple options that you know, and you obviously want to consider them very carefully, because there are different repercussions for how they’re sort of tax. But there’s an option called the non non deductible IRA, which would actually allow you to put in money that you’ve already paid taxes on. And then capital gains and dividends that you actually realize in the account aren’t taxed, but then it’s sort of taxed as you remove.

So you could save yourself some money with a nondeductible IRA, if your income is too high, to qualify for a Roth. There’s also something called a backdoor Roth, which sounds super shady. it’s legal. It involves contributing to like a traditional IRA, and then rolling it into a Roth IRA at a later date. So you can kind of you got to be kind of smart about how you do it. But take a look at those options. And, you know, obviously consult a tax professional, but non deductible IRAs and backdoor Roth’s are an option for people whose income are too high for those options. So just a couple things.

Maxx Chatsko  52:19

And if Chris is self employed, or has his own business, and that’s how he earns income, there’s other opportunities for that, like the SEP IRA. Yeah, this self employed pension plan or something I don’t know the Sep stands for but SEP IRA, and you can save depending on how you structure it 20% or 25% of your income. In it, you can also as an employee contribute the traditional IRA limits. So another 60 $500 in 2021. Yeah, so that’s a good way, if you own a business, you can save like, I think the limits like $58,000 a year or something crazy.

Steve Symington  52:50

Yeah, that’s, that’s a fantastic point. And one more option that people kind of almost forget about is just being more tax efficient with your regular taxable brokerage account. Long term capital gains for stocks that you’ve owned for at least a year, are taxed at much lower rates than stocks you’ve owned for less than a year. And you know, you’re trading, you’re paying your regular tax rates if you’ve buy and sell these things over and over again. So consider, you know, focusing on long term buy and hold and realize long term capital gains, or just let those gains compound and you don’t pay taxes until you actually you know, sell those and in realize them so.

Dan Kline  53:25

And of course, you can buy stocks on the exchange in Panama, which would be a David Lee Roth IRA. Steve, it is now time to hit our finisher Sam Bailey, bring up the graphic if you could. Thank you, Sam.

Do you think the travel industry will have a massive rebound this summer? didn’t have time to let this poll finish. But the actual finished numbers came out even more overwhelmingly in favor of Yes. 17.4% No. 22.4% said it’s too soon to tell. I’m going to jump in and say that it’s going to be somewhere in between. It takes time to plan trips. So yeah, people like me when it’s safe, who loves to travel, who have been booking trips for a year out hoping that they happen. We’re going to travel so there’ll be an increase. But Steve, I’m not so sure you’re gonna like jump on a family vacation immediately. Where did you weigh in on this particular one?

Steve Symington  54:17

I’m jumping on a family vacation. Yes, it’s a I think we’re gonna see a pretty good rebound. I’m not sure I would quantify it as massive. But I do think people are itching to get out. And I think we’re gonna see a pretty healthy recovery for the travel industry. So I probably would have voted yes. On this with the caveat that maybe I wouldn’t have used the the massive verbiage but yeah,

Dan Kline  54:45

yeah, Chris Morley, who we just talked about, talked about, points out that international travel is going to take a while to recover. Yeah, that’s a tough thing. So I know that I plan a Maxx I’ll throw to you in a second. I plan to get to England as soon as I can. Because my brother just went over as the chief Commercial Officer for for Tottenham in the Premier League and I’d like to see some games I have some friends in Europe, I’d like to visit them. But that is not something I can particularly plan now, because we don’t know what vaccine passports are gonna look like I can’t fly over there and quarantine for two weeks. So there’s definitely going to be some of those issues. Maxx What is your world tour starts or at least your your national tour,

Maxx Chatsko  55:22

You can check my website for the full tour dates. But no, I think I think massive is the right term. Steve, how dare you take, take no issue with that word. I think there’s gonna be a big a big increase in travel, obviously, I mean, relative to last year, but maybe even compared to isn’t it? I think there’s a lot of pent up demand. A lot of people are going stir crazy. They want to get out people my age too, who aren’t, you know, weighed down by family responsibilities are definitely to be traveling. So I think there’s gonna be a pretty big increase. But again, like I said earlier, watch out for oil prices. I think they’re going to sneak up on people this year. And that’s going to become a narrative.

Dan Kline  55:58

I’ll just close out this topic with that 7investing now hosted Live from Las Vegas, not too long from now. Steve Symington, there’s one more comment from Daniel Delgado, why don’t you read it and close out on a positive note here?

Steve Symington  56:11

annual thanks. The reason I picked a 7investing subscription, I’m glad you review great companies, not momentum stocks, your podcast shows are so valuable. Thank you. We don’t like to focus too much on momentum names. We like to focus on solid long term businesses that often tend to outperform those momentum names. So that’s, that’s part of the fun of it. Thanks for that comment, Daniel.

Dan Kline  56:35

We help you cut through the noise. We help you cut through the clutter. We are actually here for you. If you want to get in touch with us. You can reach us via email at info@7investing.com. That’s usually Steve. That’s for questions about the site questions about being a member in general, we’re probably not going to research a stock for you. If you want to share your opinions on something that’s great. But really, it’s for questions like that. Now, if you hit us up @7investing on Twitter, that’s more of a social format where we might talk about companies that they happen to be in our wheelhouse or something we’re working on.

But if we ignore you, if we don’t, please realize that we love every single one of you. We just don’t know every company or sometimes there’s a reason why we’re not maybe it’s an active pick. Maybe it’s one we’re considering for a pic. So we respond a lot. We are all on Twitter, I am pretty sure there was no point this weekend, Friday or Saturday or Sunday night where I didn’t interact with one of you on Twitter or slack after 10 o’clock at night. So this is not a team that gets a lot of sleep. That being said we have run out of time. Thank you everybody for watching. We will be back Wednesday.