JACK: LIZ, THANKS FOR COMING ON
THE SHOW TODAY.
>> THANKS FOR HAVING ME AND
GREAT TO BE HERE.
JACK: OBVIOUSLY THE FEDERAL
RESERVE MADE IT CRYSTAL CLEAR
THEY’RE NOT GOING TO STOP MIGHT
BEING TILL SOMETHING HAPPENS AND
WE’RE SEEING ALL THE LAYOFFS AND
RETAIL NUMBERS PRETTY STRONG AND
JOBS NUMBERS PRETTY STRONG AND
SHOULD INVESTORS BE WORRIED
THEY’RE GOING TO KEEP GOING?
>> INVESTORS SHOULDN’T WORRY
THEY’RE GOING TO KEEP GOING AND
IF THEY STOPPED PREMATURELY,
THAT WOULD CAUSE MORE PROBLEMS
DOWN THE ROAD AND NOT GETTING
INFLATION UNDERWRAPSWRAPS AND SO
STUFF HAS HAPPENED IN THE TECH
SECTOR IN THE SENSE THAT WE’VE
OBVIOUSLY SEEN A HUGE MARKET
CORRECTION IN TECH STOCKS AND
COMMUNICATION STOCKS OR
BASICALLY THOSE TWO SECTORS THAT
WOULD COMPRISE GROWTHY AREAS OF
THE MARKET AND NOW HEARING
LAYOFF ANNOUNCEMENTS, YES, THERE
ARE SOME CRACKS FORMING BUT WHAT
I THINK THE FED IS REALLY
FOCUSING ON IS THEY NEED
SOMETHING TO HAPPEN IN THE
INFLATION DATA, THEY NEED TO GET
MORE COMFORTABLE WITH WHERE THE
INFLATION DATA IS HEADED, AND
WE’VE SEEN SOME MOVE IN THE
RIGHT DIRECTION MEANING DOWNWARD, BUT STILL SITTING AT A
DOWNWARD, BUT STILL SITTING AT A
PRETTY HIGH LEVEL JUST UNDER 8%.
THEY’RE NOT NEARLY SATISFIED
WITH THAT LET AND NOT GOING TO
PAUSE OR STOP ANY TIME SOON.
>> THAT’S A GOOD POINT THAT
WHILE TOUGH IT’S NOT WORSENING
THE DISEASE.
THANKSFOR SAYING THAT.
WHAT DOES THAT IS ALL A MEAN FOR
THE STOCK MARKET?
IT’S A TOUGH QUESTION BUT DO YOU
THINK THE BOTTOM HAS BEEN IN AND
WHATEVER YOU THINK THERE ARE
THERE AREAS OF THE MARKET WHERE
YOU’RE MAYBE BEING OPPORTUNISTIC
BIG SMALL FOREIGN DOMESTIC?
>> YEAH, SO FIRST OF ALL, I’M
GOING TO STOP SHORT OF SAYING
ANYTHING ABOUT WHEN A BOTTOM
EITHER MAYBE DID OCCUR OR MIGHT
OCCUR IN THE FUTURE.
I DON’T THINK THAT WE’VE SEEN
THE LAST DRAW DOWN OF THE CYCLE.
THAT’S WHAT I’LL SAY.
THIS RECENT RALLY OVER THE LAST
MONTH, MONTH AND A HALF HAS BEEN
REALLY POWERFUL AND THAT’S
TYPICAL OF BEAR MARKET RALLIES
AND LOOKING AT TREND IN GENERAL,
THE MARKET IS STILL MOVING
DOWNWARD.
THIS RALLY MASS BEEN FUN AND
HOPE PEOPLE ARE ENJOYING AND
HOPE PEOPLE USED AS A
OPPORTUNITY TO MAYBE SELL SOME
WINNERS OR TRIM GAINS IF YOU’RE
TRYING TO DO THAT BEFORE, BUT I
DO FEAR THERE’S LIKELY ANOTHER
LEG DOWN BEFORE WE REALLY GET ON
THE OTHER SIDE OF THIS. SOME OF THE SIGNALS I’D BE
SOME OF THE SIGNALS I’D BE
LOOKING AT TO SEE THAT ARE
SEEING DATA BREAK AND
MANUFACTURING NEW ORDERS AND
THOSE ARE IN CONTRACTION
TERRITORY AND THINGS LIKE SMALL
BUSINESS OPTIMISM AND VERY, VERY
LOW AND NEAR COVID LOWS AT THIS
POINT AND OBVIOUSLY WE’RE SEEING
LAYOFF ANNOUNCEMENTS AND SOME
OTHER A>> ANNOUNCER: MENTS OF
COMPANY -- ANNOUNCEMENTS OF
COMPANY GUIDANCE PRESSURED INTO
2023 AND THERE’S INDICATORS AND
THINGS SOFTENING BUT WE NEED TO
SEE IT GET DEEPER BEFORE I CAN
BE COMFORTABLE SAYING THE MARKET
HAS GOTTEN THE WORST BEHIND IT.
JACK: FAIR ENOUGH.
I WANT TO PIVOT TO STUDENT LOANS
BECAUSE SOFI IS IN THE BUSINESS
AND DOES THE PROSPECT OF STUDENT
LOAN FORGIVENESS CHANGE YOUR
ADVICE IN TERMS OF HOW MUCH
PEOPLE SHOULD PAY OFF AND RUSH
TO PAY OFF LOANS?
>> IT DOESN’T CHANGE THE ADVICE
AND ONE OF THE RULES OF THUMB
AND LOOKING AT LEVERAGE YOU HAVE
AS THE CONSUMER AND HOW MUCH
DEBT YOU HAVE THIS CONSUMER AND
PAYING INTEREST RATE THAT’S
ABOVE WHAT YOU COULD EXPECT FROM
SAY A REGULAR STOCK MARKET
ANNUAL RETURN AND OVER A LONG
TERM PERIOD, THE S&P 500 TENDS
TO RETURN ABOUT 7% ANNUALLY.
PAYING AN INTEREST RATE THAT’S
HIGHER THAN THAT, LOOK TO REDUCE
THAT RATE IF IT’S AVAILABLE TO
YOU.
THE FORGIVENESS PROGRAM IS
SOMETHING THAT LIKELY TAKES AWAY
A PORTION OF PEOPLE’S OVERALL STUDENT DEBT LOAN BUT IT DOES
STUDENT DEBT LOAN BUT IT DOES
NOT ERASE THE ENTIRE THING.
THAT DOES CONCERN AND
OVERLEVERED AND RISING RATE AND
LOANS AND MASTER CARDS.
JACK: THAT WOULD BE TO CRYPTO
AND IF IT HAS OPPORTUNITY TO
CRYPTO AND TRADING ON YOUR
PLATFORM AND DO YOU RECOMMEND A
SMALL ALLOCATION TO THAT SPACE
AND IF YOU DO, SHOULD WE BE
WORRIED ABOUT THE SAFETY?
>> YEAH, HOT CONVERSATION RIGHT
NOW.
LOOK, I HAVE LONG SAID CRYPTO
CAN BE SOMETHING THAT YOU CAN
PLAN ON THE MARGIN BUT IN VERY
SMALL AMOUNTS AND THIS IS NOT AN
ASSET CLASS WHERE YOU PUT RENT
OR MORTGAGE MONEY IN.
OBVIOUSLY WE’VE SEEN WHY THAT
IS.
WE’VE SEEN CRYPTO GO THROUGH A
BOOM AND BUST PSYCHOAND WILL NOW
WE’RE AT A POINT WHERE WE’VE GOT
COMPANY FAILURES ON TOP OF THAT
AND LEVERAGE ISSUES WITHIN THE
SYSTEM.
THIS IS A VERY RISKY ASSET
CLASS.
IF YOU’RE SOMEBODY THAT’S
BUILDING YOUR NEST EGG, I WOULD
STAY AWAY FROM IT FOR NOW UNLESS
YOU CAN REALLY STOMACH THE RISK
IN IT AND REALLY LOOK OVER A
LONG TERM PERIOD TO RIDE OUT
SOME OF THE BUMPS.
>> THERE’S NO WAY TO SAY THE
PRICE TURNING RATIO LOOKS GOOD
ON BITCOIN RIGHT YOU.