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0:41

What a week. What a week.

0:44

Holy mackerel. What

0:47

a week this has been. And,

0:51

you know, Tom's deserted me too. Hi

0:53

everybody, Don McDonald. All alone

0:55

today. Well, except for you, of course. You're

0:57

there, I hope. Talking

1:00

about money.

1:03

Things that involve money. Money

1:05

oriented topics of sorts. And

1:07

there's a bunch of them that we can cover.

1:10

But again, as we say every

1:12

week, we want

1:14

to defer to you first. And

1:18

the way we do that is, right, you calling

1:20

us? At 855-935-TALK. 855-935-8255.

1:28

Every Saturday. Because that's when

1:30

we get to actually have

1:32

a conversation. And today's

1:34

conversation will be just between you

1:39

and me. Just

1:42

two people. Because today, it's

1:45

just me. Tom decided

1:48

to fly to Las Vegas. Now,

1:51

if you're a regular listener to the show, you'll know

1:53

why Tom chose to fly to

1:55

Las Vegas for the weekend. And

1:58

it's not for the gambling. No,

2:01

his football team is there now. Not

2:04

mine, his. So

2:06

he's there and of course, get this, get

2:08

this. You know, are you ready for this?

2:12

He left me to go to a game and

2:15

today is my wedding

2:17

anniversary. So my

2:19

wife is over at

2:22

the Grand Floridian Resort hanging

2:25

out where we're going to hang out for the next

2:27

couple of days to celebrate our 33rd wedding

2:29

anniversary at the place where we got married. We

2:32

were, although they won't

2:34

officially admit it, we were

2:36

Disney's first official wedding. We

2:40

got married in 1991 before they started

2:42

the multi-trillion dollar wedding department. Okay, I

2:44

exaggerated it a little bit. I

2:49

was doing my show, the Don McDonald

2:51

show out of Disney MGM Studios, now

2:53

Disney's Hollywood Studios, and

2:56

we had family over the country. We said, well, why

2:59

can't we just get married here since we're at Disney

3:01

all the time? I actually, we

3:03

were there on press events regularly and

3:05

they said, no, you can't get married at Disney World. And

3:08

we went, what's kind of silly? Why not? We

3:11

don't have a good reason. So they said, well, well,

3:13

we'll try it. We'll run it through conventions. We'll try

3:15

it out. We'll see how it

3:17

goes. And so we did

3:19

it at the brand new Grand Floridian

3:22

Conference Center out on the patio. And

3:25

it was a gourd. I mean, it's Disney.

3:27

They did an incredible job. They

3:29

did an incredible job. We

3:32

had a great

3:35

place for the ceremony. We had 75 people there.

3:37

We had an incredible reception. The

3:39

food was out of this world. Open

3:42

bar, flowers. They

3:46

even brought a horse drawn carriage for

3:48

us to pick us up and take us right

3:50

back to the main building at the Grand Floridian where

3:52

we had our bar suite that they gave us. And

3:57

the whole bill to my father

3:59

and. law was just

4:02

a bit over $8,000. That's

4:05

real money. That's not real money anymore. I mean,

4:07

that kind of a wedding probably

4:09

be 50,000. I don't know. I

4:12

don't know what they run, but it wouldn't have been cheap. So,

4:15

and then to top everything off this week,

4:18

we had another very expensive

4:20

experience for the state of

4:22

Florida. Thankfully not for

4:24

us. And that

4:26

was Milton. Whoa.

4:29

What a day. Wednesday was Wednesday into,

4:35

uh, and, uh, into Wednesday night or early

4:37

Thursday. We

4:39

had some hellacious winds and

4:41

incredible about amount of rain.

4:45

Uh, but again, this is

4:47

for, for, uh, for

4:51

Debbie and me, that this is the,

4:53

I don't know, probably like 10 or

4:55

12 hurricanes that have been

4:57

in the vicinity. Um, several

4:59

of which crossed right over our house, right over

5:02

the top of it. And we've

5:04

sustained almost no damage

5:07

because the community in which we

5:09

live is really, really, really well

5:11

built, great drainage, underground power. And

5:13

so we're super lucky, but

5:16

we, uh, we do feel for everybody

5:18

who's not super lucky. And there were,

5:22

there were a lot of those. It was a

5:24

really bad, it was a, it was a bad

5:26

storm even for us, even, but we didn't have

5:28

damage. And again, I'm so grateful for that. But,

5:30

um, if

5:32

you haven't been through one of these,

5:34

they're, they're pretty scary. They're loud. They're

5:37

obnoxious. So anyway, that's what's going

5:39

on with me. You are

5:41

invited to call me at 855-935-talk 855-935-8255 and coming up,

5:45

I want to talk a little bit about hurricanes, but

5:49

hurricanes and stock markets and how to predict them. Tom

5:56

and Don are talking real money.

6:02

In medicine, a second opinion might

6:04

save your life. With investing,

6:06

a second opinion might save your

6:08

future. The trick is getting

6:10

one without a high-pressure sales pitch. Well,

6:13

I'm Don McDonald, and if you've

6:15

been listening to Talking Real Money,

6:17

you know that our goal is

6:19

to help everyone create a brighter

6:21

future by investing and managing money

6:23

better. That's why, in addition to

6:25

helping everyone on our show and

6:27

podcast, we are also committed to

6:30

making our 100% fiduciary advisors at

6:32

Appela available to help everyone make

6:34

the best financial decisions based on

6:36

science. So if you're being pitched

6:38

a financial product or a system,

6:40

make sure you get a second

6:42

opinion with no cost, no obligation,

6:44

and no annoying sales pitch by

6:46

going to talkingrealmoney.com or call 800-386-3004.

6:52

That's 800-386-3004 for talkingrealmoney.com.

7:00

Your guides to a really great financial

7:02

future. Tom and

7:04

Don are talking real money. Welcome

7:07

back to the Talking Real Money program,

7:09

and then next week it'll be a

7:11

podcast. Hi, everybody. I'm Don McDonald. Thank

7:13

you for being there. I am

7:16

here. Tom is not. You are here. I hope you join

7:18

me. 855-935. 8255 is the phone number. That's 855-935, and it

7:25

just spells talk to make it easier

7:28

to remember. So

7:30

call me and let's talk. Since

7:34

we had here in Florida a hurricane

7:36

last week and then much

7:39

of the southeastern part of the country had

7:41

a terrible one two weeks prior, I wanted

7:45

to compare something. Of

7:48

course, when you have a hurricane

7:50

coming your way, you tend to

7:53

watch a lot of weather. The

7:55

Weather Channel, the local news, of

7:57

course, because they love to panic

7:59

you. But I noticed

8:01

something really really interesting with

8:04

these last couple of hurricanes.

8:07

One of the things you'll see in

8:09

the forecast is the spaghetti models.

8:13

These are various computer models

8:15

that predict the path of

8:18

the storms. And

8:20

I noticed recently

8:22

that these things are all

8:25

starting to line up and

8:27

they're becoming pretty accurate. There

8:31

were times when we were surprised. Suddenly a storm

8:34

would turn. I remember one that hit us, went

8:36

out the ocean, came back and hit us again and

8:38

they went, well, hey, don't do that. They

8:41

did. But

8:43

what I wanted to do was really

8:46

look into the predictive

8:49

process for hurricanes.

8:53

Because I'm in

8:55

a business where there are

8:57

lots of predictions made

8:59

about the markets.

9:02

Interest rates, but particularly the stock market.

9:04

What is the stock market going to

9:06

do in the short run? Just the

9:08

whole market. Let's not even talk about

9:10

individual stocks. We're going to get into

9:12

real complexity. But

9:14

let's think about the

9:17

hurricane forecasting process. What

9:20

has really really made for accurate

9:22

hurricane forecasting is the use of

9:24

supercomputers. They have really changed things

9:26

because what you are able to

9:28

do is input a

9:31

variety of parameters into the computer

9:33

and the computer then can compare those to

9:36

things that have happened in the past and

9:38

run simulations and do a lot of this

9:40

in a very short period of time. It

9:42

would take humans a lot of time to

9:44

do. And they come

9:46

up with a consensus

9:48

as to what's going to happen and it's based

9:50

on a relatively few things when

9:53

you think about it. I've

9:55

done a lot of reading about it and it's most

9:58

of it is basic physics. Heat

10:02

rises. The

10:05

Coriolis effect where when

10:08

things spin in the northern hemisphere

10:10

they spin counterclockwise.

10:14

So you know certain things are going to happen

10:16

that you're going to get a spin when hot

10:19

air is rising then you've got to have that

10:21

the spinning of the atmosphere and then that

10:23

spinning of the atmosphere along

10:26

with the various currents

10:30

in the atmosphere, the interaction

10:33

between high and low pressure, the

10:35

jet stream, the currents

10:38

in the ocean, all of these things are

10:41

relatively known quantities and they can

10:43

feed this information in. And for

10:45

example with Milton it

10:48

was moving because of the spin and

10:50

because of the hot, hot water in

10:52

the Gulf of Mexico caused it to

10:54

spin up really rapidly to category 5.

10:57

But then as it got closer to land

10:59

you had the wind coming off of the

11:01

continent coming down in a cold front which

11:04

is falling south that was ripping

11:06

off the tops of the clouds causing the

11:08

storm to get smaller and they very accurately

11:11

predicted not only where it was going to

11:13

go but what size it would be along

11:15

the way and then when it gets to

11:17

land you know when it hits the land

11:19

it actually encounters the

11:21

friction. The water slippery,

11:23

land is not, it's sticky.

11:25

So that causes the storm

11:27

to spin down which is why we only had

11:30

100 mile an hour winds instead

11:32

of 140-50 mile an hour winds here

11:34

in the central Florida area. So

11:37

all of those things allow the

11:39

prediction of the market but in

11:41

large part it's because there are

11:44

not very many variables and

11:47

the variables are

11:49

easily calculated because

11:51

they're based on science fact.

11:55

Problem with predicting the stock market is

11:58

it's not based on physics It's based

12:00

on physics with

12:02

an F. Okay, I plug

12:04

for my book, Financial Physics. Because

12:07

there are no physical forces

12:09

that act on the stock

12:11

market. What forces

12:13

act on stock prices? Us.

12:19

We do. Each

12:21

and every one of us. And

12:27

we as individuals are

12:29

not predictable. We

12:31

are, in fact, I think you can

12:33

make a very good case that we

12:35

are not even logical. And

12:39

we have so many psychological

12:42

biases that

12:45

calculating all of those involves

12:49

numbers. Well,

12:51

in the United States alone, there are about 160 million

12:55

people invested in equities in one

12:57

way or another. And then multiply

12:59

that by the population of the

13:01

world. And so you've

13:03

got hundreds of

13:05

millions of people who

13:07

are all acting in various ways

13:10

depending on what they want, what

13:12

they need, how they're feeling, what

13:15

their expectations are, their personal frame

13:17

of reference, their political bent. We've

13:20

got so many variables in

13:22

this vast quantity of variables,

13:24

which are human beings, that

13:27

the math has got to

13:29

be close to impossible

13:32

given current limitations. Now,

13:34

quantum computers, maybe someday they'll be

13:37

able to actually take each of

13:39

our individual biases into account and

13:41

come up with some sort of

13:43

a predictive supercomputer program, quantum computer

13:45

program. But for now, you

13:47

can't. And the reason, it's hard to predict

13:50

hurricanes and they have a limited number of

13:52

factors and most of those are based on

13:54

hard physics that scientists

13:56

truly understand. And

13:59

yet, they can tend to be unpredictable,

14:02

a little unpredictable. The

14:05

reason the stock market won't

14:07

be predicted anytime soon with

14:09

accuracy and consistency is

14:12

because there are just too many variables

14:14

to calculate. So what does that

14:16

mean for you? That

14:19

means that the markets

14:23

will never do what

14:26

you expect them to do all the

14:28

time. And if you do

14:30

predict the markets, you

14:33

have a limited amount of information on

14:36

which to make those predictions, on which to base

14:38

them, so you can't do it. You

14:40

as an individual can't do it. You're

14:42

only lying to yourself if

14:44

you think you can predict the markets

14:46

or individual stocks because you cannot do

14:48

it. However, again,

14:51

in a world of millions

14:53

of possibilities, there's

14:55

a lot of room for luck. A

14:58

lot. And our

15:00

psychological problem is that we

15:05

often confuse luck

15:07

with skill because of our

15:10

egos. We

15:13

think we're better, we're smarter, and

15:15

we're not. And so if

15:17

you can learn something from hurricanes and

15:20

the, still the difficulty

15:22

in predicting exactly where they're gonna go and when

15:25

they're gonna get there, well

15:27

then you should understand why it

15:29

is impossible for

15:32

anyone to predict where the stock

15:35

market is gonna go. The only

15:37

thing you can know with some

15:39

semblance of certainty is

15:41

that if the world doesn't end, the

15:43

human economy will probably do what it's

15:45

done for thousands of years, and

15:48

that is continue to grow. And

15:50

that's a factor in your favor

15:53

because that means if you invest

15:55

and stay invested, then

15:58

your chances of success. are

16:00

pretty good and you don't even have to pull

16:02

yourself into believing you know the future. 855-935-TALK call

16:05

now. Tom

16:08

and Don are talking real money.

16:11

My dad works in B2B marketing. He

16:13

came by my school for career day

16:15

and said he was a big ROAS

16:17

man. Then he told everyone how much

16:19

he loved calculating his return on ad

16:22

spend. My friends still laugh at me

16:24

to this day. Not everyone gets

16:26

B2B, but with LinkedIn, you'll be able to

16:28

reach people who do. Get $100 credit

16:31

on your next ad campaign. Go

16:33

to linkedin.com/campaign to claim your credit.

16:35

That's linkedin.com/campaign. Terms and conditions apply.

16:38

LinkedIn, the place to be, to

16:40

be. For your real

16:42

life and real future, Tom and Don

16:44

are talking real money. Well

16:46

today it's just Don talking real money. Tom

16:49

is on his way to Las Vegas. I,

16:51

as soon as I get done with the

16:53

show, I'm on my way to celebrate with

16:55

my wife. 855-935-8255 is the phone number, 855-935-TALK.

17:03

And Valerie, it's your turn. Thanks for calling and

17:05

welcome to the show. Hello.

17:10

I wanted to say happy anniversary. Thank you.

17:13

That's exciting. Thank you. And

17:16

so earlier this year I did

17:19

your guys' advice and

17:22

I got out of my American funds. Oh

17:25

good. I opened up my own travel swab

17:27

account and I was

17:30

able to figure out how to automatically take

17:32

the money out of my bank account and,

17:35

you know, get it in there for

17:37

my Roth IRA. And

17:40

now my issue is, oh, and I've

17:43

been buying the AVGE stock, right? Because that was

17:45

actually amended. Okay. The total

17:47

world of Avantis ETF. Yeah.

17:51

And my question is sometimes

17:54

the price of the stock is $77. Sometimes

17:58

it's $69. dollars. And

18:00

then it also says

18:02

that I can pick my own

18:05

price. And my

18:07

problem is sometimes I have

18:09

enough for my monthly allotment to

18:11

do two shares. Sometimes it's only one share.

18:14

And I don't understand

18:17

this process of buying the

18:19

stock. Like got it. I

18:21

understand to go for the

18:23

lowest price possible. No, no.

18:27

Yeah, it is very confusing. What

18:29

what I would suggest and what I suggest to

18:31

everybody is that you put

18:33

your order in at market

18:37

at what the market price is. There

18:39

is a on all. Let

18:42

me go back because this is a sort

18:44

of a process. A

18:47

V G E is an exchange traded fund,

18:50

which means instead of being a normal mutual

18:52

fund, it is a mutual fund that trades

18:54

on a stock exchange. So it trades like

18:56

a stock, which means it has

18:59

a bid and

19:01

an ask price. The

19:04

bid is the price at

19:06

which people are trying to buy it doesn't

19:09

mean it's trading at that. That means that's

19:11

the price people are offering for shares who

19:13

want to buy a bunch. They want to

19:15

buy tens of thousands or hundreds of thousands

19:17

of shares. And then the ask

19:20

is what people are trying to sell it for.

19:24

Often they don't get either side of that.

19:27

That's there's a bid and there's an ask

19:29

and the prices come in often somewhere in

19:31

the middle. Now,

19:33

right now, the price of A V G E

19:36

for let me pull up the

19:38

chart for the past couple of

19:41

months, it has not been

19:43

in the fifties now. Yeah,

19:45

it's about $74 a share

19:47

and it's bid ask has been in

19:49

that range in that 73 74 area.

19:54

You really, does it been as high as 74 hold

19:56

on. I got more. Morningstar

20:00

is running very, very slowly. Yeah, lately it was

20:02

74. So it's been a day

20:04

to day, it's looking like it's been

20:06

73, 74, somewhere in there. And

20:10

the difference in reality is gonna be a few cents, 10,

20:12

15, 20 cents a share. So

20:15

it's not worth kind of waiting around. If you put

20:17

in a price, you

20:20

put in a particular price, you

20:22

may not get your stock because you may be

20:24

too low. Yeah. So

20:27

it's better just to just buy at the

20:30

market, just buy at

20:32

the market because we're playing the trend

20:35

and the trend for the stock

20:37

market has so far for the

20:39

past hundred years almost been

20:42

positive, not daily positive, but

20:44

year to year to year to year

20:46

to year, generally positive. Which

20:48

means if, for example, if you bought AVGE when

20:50

it came out back in 2022, you paid $50

20:52

a share. Today

20:58

it's 74. Yeah. So

21:00

you wanna just buy it at whatever the price is

21:02

because let's say back in 2022, you

21:05

put in a bid at $49 a share. It

21:08

would have never filled. You

21:11

wouldn't have gotten the stock because you wanted to wait

21:13

for a better price and that price, it never hit

21:15

that price. So

21:18

the money just sits there. You don't actually- Right. It

21:20

doesn't work for you. It's a finance plan. It

21:22

sits there in cash making nothing. So

21:25

the trick is to always put in a

21:27

market order on all

21:30

of the things we talk about because

21:32

they're widely traded, which means the spread

21:34

minute to minute is gonna

21:36

be very small, very, very

21:38

small. The only time the spread is

21:41

wide is when you have a very

21:43

lightly traded stock or a very lightly

21:45

traded ETF. And we wouldn't recommend those

21:47

because those tend to be niche funds

21:49

or actively managed and we

21:51

don't want you in those. So for an AVGE,

21:54

bottom line, market orders. Thanks for the

21:56

call. Tom and Don

21:58

are talking real money. reality

22:06

radio for a really great

22:08

future. We're talking real money.

22:11

With the show I'm done, Tom's taken

22:14

the weekend off and I'm so glad

22:16

that I got to spend a little

22:18

time with you because this is

22:20

when I get to talk with you at 855-935-TALK. 855-935-8255. It's

22:26

really easy. Craig did just

22:29

that. Hey Craig, welcome to

22:31

the program. Hey

22:34

Don, how you doing? Good, thanks Craig. What's

22:36

up? Well, so I'm kind

22:38

of figured back in actually on your answer

22:40

to a question yesterday but now on the

22:42

last caller as well. So

22:45

I was wondering about the bid ask

22:47

as well and partially because I

22:50

was explaining to somebody or

22:52

talking to somebody about this

22:55

and we were looking at Vanguard

22:57

funds and their bid ask spread

22:59

is usually one cent, two cents

23:01

whereas about this is always

23:03

10 to 20 cents

23:05

and it never I've always done market

23:07

orders. It's never changed but I couldn't

23:10

intelligently explain what drove either number and

23:12

I was hoping you could give me

23:15

some explanation like I'm for so that

23:18

I could in turn do

23:20

the same. Absolutely and the

23:22

difference as I explained I think before

23:24

is volume. It's all trading

23:27

volume. The

23:29

Vanguard ETFs like VT,

23:32

VT, in fact

23:34

let me see if I can pull up its volume and

23:37

I apologize. I look everything up

23:39

on Morningstar and lately my internet

23:41

is fast. I mean it's really

23:43

fast so not my computer but

23:47

their servers are really slow. The

23:49

volume like the average volume on

23:51

AVGE is about 26,000 shares

23:54

a day. I

24:01

mean, that's good volume, but

24:04

when you compare it to VT, which I'm trying

24:06

to pull up there it is Vanguard Total World

24:09

Stock Index, slowly loading.

24:11

So I have to do

24:13

a little bucking and winging here as

24:15

we wait for it to slowly

24:17

load and then for that little

24:20

category to fill in. Come

24:22

on Morningstar, really guys, if

24:25

anybody from Morningstar is

24:27

listening, your servers are

24:29

so incredibly slow. It's

24:32

time to invest in new servers. Ah,

24:34

here we go. So we're talking

24:36

25,000, which is respectable. VT

24:40

has daily volume on

24:42

average of 1.3 million shares. Good

24:46

Lord. That's the difference.

24:49

I mean that truly. So

24:54

kind of related, and this has happened to me

24:56

a few times now and it's buying about this

24:58

funds. I'll put in a, I

25:01

always do market order and

25:03

Fidelity will come back with a

25:05

notice that it's

25:07

been partially filled. Does

25:10

that have anything to do with the bid ask or

25:12

why would that happen? Because it's not infrequent. It's

25:15

not really, I have never had a partial.

25:18

I've gotten, I mean back in the day when I used

25:20

to be a broker, I would get partial fills when we

25:22

would put in a limit order. But

25:25

on a market order, it probably, what

25:27

it probably meant was there just wasn't

25:30

an active ask at the time. Okay.

25:34

So they have to wait. So it is

25:36

somewhat related. So yeah, they have

25:38

to wait for someone because I know with individual

25:40

stocks we would get that because there was no

25:42

one at that price. But

25:46

and again, just to put all of this

25:48

in perspective, one of the

25:50

highest traded stocks in

25:52

the world is Apple. So

25:54

we have the Avantis global

25:57

fund, AVGE at about 25,000. and

26:00

shares a day. We have

26:02

the Vanguard Total Market Index ETF at

26:04

1.3 million shares a day and

26:08

Apple at 52 million shares a day.

26:15

So you see the differences. So if it's part, yeah,

26:18

yeah, absolutely. That explains it. So

26:20

if it's partially filled, when

26:22

it gets, when the other part gets filled,

26:25

are you paying a different price or are

26:27

you locked in it when nope, you're paying,

26:29

you'll be paying a different price unless your

26:31

order is all or none. And

26:34

this is getting into terminology. I have not used,

26:36

literally, I have not used in 20 years because

26:41

that was back in the days when we

26:43

would do, we'd do limit orders and

26:46

stop orders and, and all

26:49

or none is when you put in an order at

26:51

them at a price and you say

26:53

fill all or none at that price. So

26:56

if you have a market order in and let's

26:58

say your market order fills at 74 and

27:01

then the next shares that come in, the next

27:03

seller comes in at $74.25, you're going to get

27:08

74.25 for your next purchase.

27:11

So it's going to, it's going to depend on what's going on

27:14

on the other side. Thanks, Craig. Tom

27:17

and Don are talking real money.

27:20

Do you suffer from hodgepodgeitis? I'm

27:22

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27:25

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28:19

Results may vary. Hey welcome back to the

28:21

show sorry we had a little technical problem

28:23

which I'm going to be getting upset with

28:25

someone about soon at Thailand. My

28:28

Thailand's I have this device it's called

28:30

the Thailand. It connects to another

28:33

Thailand in Seattle and when it works

28:35

it's absolutely wonderful but

28:37

it's it's been in the shop for

28:41

ages and it's still

28:43

doing the same thing it's just

28:46

locks up and shuts down randomly. This doesn't

28:48

dad you can't do anything with it you

28:50

have to totally turn it off and reboot

28:53

it. So that's what I did

28:55

hey 855 935

28:57

talk is our phone number 855-935-8255. I want to reiterate something

29:01

though before we get

29:03

too deep in these

29:05

weeds with the bid-ask

29:07

spread. Every stock

29:11

everything traded on an exchange has

29:13

a price at which someone wants

29:16

to sell it and

29:18

a price at which someone wants to buy

29:20

it that is the bid-ask spread.

29:23

Now most of the time when someone

29:26

wants to transaction

29:28

has to occur they meet in

29:30

the middle it's a it's a compromise

29:33

in of sorts or you if you've got

29:35

a small order that comes in then they

29:38

it fills at the ask

29:40

price. If you have

29:42

a big order that comes in then they'll they'll

29:45

fill it at the bid price so they're always

29:47

matching these orders up and it's all done with

29:49

computers these days. So but

29:51

I don't want you to get too caught up in

29:53

it because as the callers

29:55

have said we're talking a penny.

32:00

you recommend as a split

32:02

between U.S. and international for

32:04

both equities and bonds? Well,

32:07

this is an area where Tom and I have

32:09

a difference. He

32:11

believes going with whatever the

32:14

current global

32:18

market cap split is, which

32:20

these days is, I haven't

32:22

looked in a while, but it's, I

32:25

think it's below 60-40. I think it's, you know,

32:27

in the 60 or in the 50,

32:30

60 something, 30 something. I,

32:35

on the other hand, believe that it's

32:37

better to go back to what we

32:39

had for such a long period of

32:41

time when the two markets

32:43

were both doing well. And I have

32:45

a 50-50 split in my equity portfolio

32:48

between U.S. and international. Because

32:52

if you look at the rest of the world,

32:55

it is in terms of

32:57

consumers and wealth,

33:01

very, very similar, the rest of the

33:03

world in many other factors, it is

33:05

similar to the U.S. in size. So

33:08

that's how I, and the

33:10

other thing that I keep looking at, and this is

33:12

not a market timing thing. I've stuck with 50-50 for

33:15

over 10 years. More

33:18

than that. Gosh, I'm getting old, probably 20 years. The

33:22

other reason is the

33:25

fact that the U.S. market, I don't

33:27

want to up my U.S. allocation just

33:29

because the U.S. market has done so

33:31

much better than the

33:33

international markets. And the last decade, the

33:36

U.S. market has just soared way above

33:38

the international markets, becoming a larger market

33:40

in terms of market cap. So I'm

33:43

not a big fan of that market

33:45

cap allocation, but that's me. I'm a

33:47

50-50 person. I just

33:49

think that's a simple number to set

33:52

for those times when the U.S. market does

33:54

poorly and the international market does well. You

33:56

have to rebalance to something. That's what I

33:59

really want to do.