The Jon Sanchez Show

08/09- How would you grade yourself this week?

What a week it has been on Wall Street. From a global sell off to a significant rebound. How would you grade yourself and your portfolio after this week? Did your portfolio hold up well? Did you “buy on the dip” during Monday’s sell off? Did you mentally panic or stall cool, calm and collected? Similar to an athlete watching films of the game, you need to look back on this week and learn from it.

Duration:: 34m
Broadcast on:: 09 Aug 2024
Audio Format:: mp3

How to have fun. Anytime. Anywhere. Step 1. Go to Chumbocassino.com. Chumbocassino.com. Got it. Step 2. Collect your welcome bonus. Come to Topo welcome bonus. Step 3. Play hundreds of casino-style games for free. That's a lot of games. All for free? Step 4. Unleash your excitement. Chumbocassino has been delivering thrills for over a decade, so claim your free welcome bonus now and live the Chumbo life. Visit Chumbocassino.com. P.T.W. Group. No purchases are employed or prohibited by law. See terms and conditions, 18-plus. Good Friday, evening to you. Welcome to the John Sanchez Show on News Talk 780K. It's a pleasure to be with you. TGIF, as Jason and I always like to do, we give you a number of exclamation points, depending upon the volatility of the week. What do you say, Big J? I'm going to say about three to four exclamation points after this week. What do you think? You think that's fair? The VIX got to go like 60, so we should try to do like 60 exclamation points. I mean, what are you talking about? The friggin' market was flat this week. Yeah, I know. That's a remarkable thing. All this covetching, you know. I mean, I tell you what, there was a direct correlation to email traffic from Monday to today. The hell there you go. In line with how VIX came in, I'm not sure how that happens. I think you have a wonderful topic tonight to talk about how one should be steely-eyed in the face of volatility and sometimes doing nothing is the right answer. Yeah, sometimes that is the answer. Absolutely it is. Alright, well, Jason, let's get out of the bag. Let's tell you what we do have lined up for you. We're of course going to give you a recap of today's Friday's trading activity and not a bad day overall as you will find out here momentarily. But, you know, as we do each and every Friday, we look back over the week, talk about what happened, try to lay out the game plan for the upcoming week. And this week's going to be a little bit different. We are going to look back, of course, so what's happened over the last few days. But we're going to take a little bit step further. Now think about this, right? I mean, this has been a very, very long week for everybody, but let's think about this for just a second. First of all, we got to say what a week it has been, right? It started last Friday and culminated on Monday with a major global sell-off and then some good days, some bad days, so on and so forth. But here's what I want you to think about here. We're going to take you back to school a little bit. We're going to ask you to grade yourself. That's right. Grade yourself A through F on how you felt you did this week. Here's the questions you're going to be asking yourself as we progress through the show tonight to implement that grade. Number one, had your portfolio hold up? Did you get killed on Monday and rebounded nicely or you stole down, right? So how the portfolio hold up? What's the grade there? Did you buy on the dip on Monday during that massive sell-off? Or did you hold steady, which again, nothing wrong with that. That would turn out to be the right move. Or maybe you did buy the dip and boy, sit on probably some nice profits a bit upon what you bought. More importantly though, let's get in between your two ears. Did you mentally panic or just stay cool, calm, and collected? What's the grade there? So the best analogy we can give you is think back to those of you that played sports in high school or in college, right? You learn by going back and looking at the game films, right? Criticizing yourself, say, I missed that tackle or boy, I missed that fastball, whatever it may be. You need to do the exact same thing after a week like we experienced this week. We need to look back over the time. Take a self-analysis and say, how did I really do? And the reason Jason and I want to do that this evening is really important because as we again laid out, at the beginning of the year, we warned everybody, this is going to be an extremely volatile year for a number of factors. But of course, we haven't really got into one of the driving forces of volatility we're going to face this year, which is the upcoming election, right? The closer we get and it's going to probably be starting really nicely towards the middle of this month, maybe at the latest next month. So volatility is here to stay. So this was a great week, Jason, for people to kind of, again, get a feel for a how the portfolio did, how it responded to this week's extreme volatility. But again, more importantly, you're driving or you and your financial advisor are driving the portfolio, right? How did you hold up? How did you mentally hold up? Like Jason said, a lot of emails, no emails. What were you thinking? What were you communicating with your financial advisor? If you're self-managing your money, how did you handle it, right? Did you go, you know what, markets, long-term perspective, I didn't care too much about it or, oh boy, I had some sleepless nights on Monday night, especially after the thousand plus point loss. So it's going to be a lot of fun to do a little look back and look at the game films, as we like to say. Yeah, no, I mean, we saw a lot of things as we talked about the volatility in the market spiked to levels only seen during COVID and 2008, right? So, yeah, I mean, people got caught wrong-sided and like anything, right? The more and more and more and more complacent you get. You being everyone in the markets in general with sort of calm. A shock is oftentimes magnified, right? If you're not ready for it, if you're nice and calm and sitting in your couch, you know, kind of restful and something falls out of the, you know, cupboard, you tend to jump a hell of a lot higher versus if you were, you know, kind of stuff falls out of that cupboard all the time, you're ready for it. But I think this was a week that probably, you know, I think healthy overall to get a sense that, you know, markets don't just go up into the right forever and you can get these exogenous shocks like a yen move or, you know, volatility spiking, et cetera, to at least right size expectations to let folks know that, you know, it's not a Ponzi scheme. It doesn't just go up every single day that you get pullbacks that can be opportunities to take advantage of or opportunities to be like, wait a minute, I have a plan in place. I have a long-term, you know, sort of biased portfolio that, you know, the game is not to, oh my gosh, get out, get back in, get out, get back in just because you're afraid. And if you sat in your hands and did nothing, you did perfectly fine. And I think that at least shows you that, you know, to at least just adjust your decisions for your time frame, there's parts of your portfolio that are there to trade around by the dip, seller alleys, but probably the bulk of that thing should, you know, kind of weather the storm and hopefully diversified enough that you didn't track the S&P all the way down and same vice versa. You didn't feel as much pain as maybe some others did who are probably a little more aggressive than they should have been. I want to talk to you from your former world of hedge funds. I want to get into your brain a little bit on what's going through their brains at this point, but I want to go back to something you said a moment ago. You know, what did you do? Did you hold steady? It turned out to be a pretty good deal. Or did you buy on the dip, right? So I did something kind of fun on Monday, Jason. I can't remember exactly what time I did it. I think it was really close to the lows of the day. And what I did, I said, okay, let's just say someone's got a few bucks that they want to, you know, get in and buy the dip as the saying goes. So I made up on my spreadsheet here. I said, okay, let me buy the the what I feel are the top five, you know, technology related names, right? Apple, Amazon, Nevada, Microsoft, and Meta. So I just picked those five because they're very widely held, of course. And I said, okay, what if you just, you know, the percentage is going to be the same, but I just said, all right, what if you bought $10 or 10 shares of each one of those? So right at the market bottom on Monday, those 10 shares would have cost you $13,176, right? 10 shares of those five stocks. Then today, and I didn't do it at the close, but it was it was about mid session today. I updated that and I said, okay, so how did that little little, you know, test do there? Well, that $13,176 you would have spent on those five stocks as of this morning was worth $13,895. You would have made about $719, but I don't care about the dollar amount. I can do anything. What I'm concerned with is the percentage. That would have been a 5% return, not bad for a week, right? But as Jason and I, those of you that have listened to us for years, we've always said, one of the hardest things you can ever do as an investor is running into the burning building. That's what we had on Monday. Did you run into the burning building, or did you stay away from it? And again, if you stayed away, no problem. But many times, of course, when when it seems like the world is falling apart, that seems to be some of the times that where you can make the most amount of money. Now, it can go sideways. Well, we didn't know on Monday, and it's easy to armchair quarterback now, right Jay? What we didn't know on Monday was, was this going to continue? Was that sell-off we experienced on Friday? And then on Monday, was that going to continue on Tuesday, Wednesday, Thursday, so on and so forth? Was it going to be the beginning of a major correction? And you never know that. So this sounds really good. Yeah, you could have made 5% just buying those five stocks. But again, the opposite could have happened. So you never know, but it's fun to kind of look back. And again, we always test ourselves. How did we do in our client's portfolios? Is there something that we could have done better? What did we do? Right? We're always learning, right? That's great thing about this business. You never, ever, ever stop learning. And so there was just, like I said, a little exercise that I thought would be kind of interesting for everybody to learn from that when it looked like the world was, you know, falling apart. Hey, you know, throw a little money into it. And as we discussed in some of our shows this week, you know, this would have been a great week for a little bit of dollar cost averaging also. Yeah, I mean, and again, it matters how you come into those days, right? If you're already at or above the risk level that you normally would expect to have in an account, adding more on a bad day is not what a risk manager would recommend. If you are already theoretically underweight because you've had a rally and you've taken some money off the table and you get a dip like that, then yeah, 100%. It's great to have that dry powder, but doubling down when you, you know, your risk is already fully there. Those are the times when you blow yourself up. And that's the part two, you know, it positioning is very important into, you know, these things. If you can convince yourself, and it's a very difficult exercise to do to sell high and buy low, I know that sounds like what you're supposed to do, but very few people do it well. They tend to think, Oh, well, we're up, we're going up more. That's momentum. And when we're going down, oh, my gosh, we're going down more. If you can get yourself, like we've talked about in the past, and, you know, again, we talked about this ironically at the end of sort of the July time frame when the market was peeking out, this is the time to take some money off the table, right? Vix was as low as it possibly could be the S&P was darn near all time highs. Those are when you want to peel off risk and then have some dry powder doesn't mean you need to go to cash. But for taking 10% of your portfolio or 5% or something to give yourself that dry powder, you very much can take advantage of it. But if you're full risk and you're at the lows, double down. Yeah, it can work. But again, on the flip side, it can also create more problems than probably folks were prepared for. Absolutely. Great advice, sir. All right. We come back. We're going to move into Jason's former world, the world of hedge funds. I want to talk to him a little bit about what happened this week with the hedge funds as far as the blow up of the carry trade, which I know we won't get into all the boring details of how that works. Jason explained that tremendously earlier this week. But let's kind of talk about, you know, it's what, 618 in New York right now. Are these hedge fund managers, you know, heading to the Hamptons for the vacation? Are they sitting in the office just shaking their head with a big bottle of whiskey going, "What in the hell happened to me this week?" Or some hedge funds may be out of business. You know, this was a volatile week. And if you were on the wrong side of it, they may have lost a lot of money or if they're good, they made a bunch of money. So they were kind of the driver. So let's delve into their minds right now when we're talking about the middle aspects of investing. And what did we learn from this week's volatility? What are we going to learn in the highways and byways of Northern Nevada, Kristin Snow? Welcome, how are you? Welcome back to the John Sanchez show on his talk, 780K, which with Jason Ghana, Sanchez, both men has been happy Friday to all of you. We wish you a great weekend. We finished up with a modest gain of 51 on the Dow at a 39,497. As they gained 85.51%, S&P rose 25 points or 0.47%. On the weekly basis, we almost made it into positive territory. And a few of them, like the S&P, only finished the week down 4/10 of a percent, Dow lost 6/10 of a percent, NASDAQ 0.18 and the Russell 2001.35% pullback for the week. All right, so we're trying to learn again, we're going back and looking at the game films, right? We're trying to learn what went right, what went wrong in your portfolio for this last week. How did you handle things mentally? How did you handle things physically? Were you a buyer of the dip or just sit on your hands? Did you panic? Did you get out and you didn't get back in? What did you do? Spend some time this weekend when you have a little bit of quiet time, hopefully, and do a little self-reflection and give yourself a grade. If your grade is, let's say, below a bean, so you got a CD or an F, is how you grade yourself, learn from it, right? Because volatility, folks, as we've said all along, it's not going anywhere. And you can use weeks like this to become a better investor, right? To make sure that you don't repeat the mistakes over and over again. This market and economy are always going to be throwing things at us. We never can, you know, lay out a perfect game plan, but each and every time, you know, we have a volatile week and a scary week like it was at the beginning, we try to learn from it. That's a great advice for both you as a retail investor and for professionals also. Now, let's go back to the beginning of this week, Jason, as we look at the game film here and talk about, again, the carry trade. Let's try to make this as simple as possible. And I've got a much simpler mind than your incredible technical mind. And so I was looking at something over the weekend, or excuse me, over the week and getting a better idea of the carry trade. And here's a real simple analogy that I came up with, okay? And it wasn't me. Actually, I read this on Investopedia, so I'll give them the full credit. But explaining your terms, the carry trade, as a former hedge fund manager, and then I'm going to put it in real simplistic terms and tell me if we're right on track, all right? So you go first. All right. The carry trade. So the yen is a currency, much like the dollar is. And when you borrow something, there's an interest rate attached to it as to what it costs you to borrow that asset. Well, the yen was darn near trading at zero. So you could theoretically borrow infinity yen and then use that money to go out and buy dollars, buy bonds, buy stocks, buy whatever the heck you want, because your borrow was very, very low. That relationship between dollar and yen was sort of fixed and changing. And in this case, interest rates started to change. That differential started to change. And so people saw the yen that they had borrowed in dollars go against them. They saw the yen become more expensive. So their negative position started to hurt them more and more and more. And they had to unwind the trade, which caused, again, all the moves in the yen and also the move in our US markets, because you got to sell what you went out and bought with all that borrowed money. That's my shortened suite on the that is a beautiful explanation, beautiful explanation. I'm going to make it even more simple, right? Here's again, an analogy, not going to be any better than yours, but just another way to look at it. We all get offers on our credit cards, zero percent financing, right? Okay. So let's say you're carrying a $5,000 credit card balance with ABC credit card. They send you their competitor, send you an offer and says, Hey, we'll give you zero percent on that $5,000 if you transfer it over to us. Oh, not bad. Let's see. I'm paying. I don't pick a number 15% on my $5,000 balance with ABC credit card. But XYZ credit card company says, we're going to give you zero percent. That's the same thing. That's a carry trade, right? You're going to go basically borrow money, which is what you're doing when you put money on a credit card. It's zero percent for a while. Now, what do you do with that differential, right? You're paying 15% to ABC company, now you're paying nothing. So what do you do? You can go out and you put it in the stock market. Hey, things are great. So you get a 10% return. Boy, you look like a genius. You just performed a carry trade. But what happens if the stock market turns against you and that $5,000 gift that you just got? Oh, all of a sudden, it starts to fall apart. Now you're in a world of hurt. That's just a real simplistic way to do it. Or you could say, all right, I'm going to take my zero percent and I'm going to go be real safe with it and go put it, let's say in a CD or a money market account. So I saw that analogy like I said on a VISTA. What's that? Yeah, I think that's great. It's a great way to think of it. I mean, what do hedge funds do? We hedge ourselves, right? You and I, and our portfolios here and our clients, like we don't have short positions in stocks. We just don't do it. We're not a hedge fund. What is a short position? I can benefit when the position goes down. Like I win when it loses, right? If you think hedge funds don't have to be this, you know, oh my gosh, they're the evil person in the corner. If I think that IBM is going to outperform Microsoft, I buy IBM and I short Microsoft. It's my hedge. Why? Because technology, which both of those are, is correlated. They move together. Even though over time a better company tends to outperform an inferior company, Beta, which is the technology sector, moves. If tech's up, odds are, unless they did something IBM, maybe up 1.1% and Microsoft's up 1%, right? They're both tech. They move together. And especially now with the ETF occasion of the world, tech really moves together. That term is correlation. Well, if I'm a manager and I do my fundamental analysis and I say IBM's got all these cool little widgets they're going to make over the next year, but I also want to protect my clients in case the market sells off. So IBM could be great, but the market could sell off. Well, what should I try to hedge myself with? I can't hedge my IBM bet with IBM because then I have no bet. Well, why don't I just go short Microsoft? It's similar and they're not perfectly similar, but for the analogy, they are. Now I have a tech hedge that if beta sells off because beta is the volatility of a blow up or right, but the yen blows up or whatever, Microsoft and IBM probably track each other. I don't lose money because of the market. I only lose money if I'm wrong that IBM's going to outperform Microsoft. So that's part of it. Well, what if IBM whiffs and Microsoft beats the quarter? This is what just happened a week ago, right there. Long stock blew up and their short stock ripped and that's essentially what took place and they were negative on the yen and the yen went up 10% in a week and they were long the market and the market got crushed. So they got what I like to say, you know, sort of arms ripped off or face ripped off in a bad way. And that's really what happened because leverage, as we all know, you know, hurts when you don't own something you borrowed to do it. You know, we've all seen that back in 2008 with housing crises when they go underwater, right? It gets a little painful. So that's really a lot of what happened. And that's why Vix ball blew out because there was a lot of concentrated panic in that trade, even though it probably didn't spill over to Main Street, as long as no bodies float to the surface, like we said earlier in the week. I think that this was a buying opportunity, but we don't know yet if anyone truly, you know, deed from that trade. There you go. Excellent explanation. As always, all right, we come back. Let's get into the minds of those that caused the hedge funds. What did they do? Why did this blow up? What can we learn from it? If you want to many discussions we'll have when we return on the market. Looking back on this week, looking at the game films. In the meantime, I started over to Greg Neff. He's got news, traffic and weather. Hey, Greg, to show a new stock 780K, which was Jason Gone of Sanchez, wealth management. You know how you know you're getting old Jay? How's that? When the song that they were just playing in your senior year of high school. That's when it came out and it was popular. Yeah. That's a good 10. Oh, man, it is a great dude. I like the intro in a steely Dan they always use on the station. Yeah. Absolutely. No. Greg just, you know, plays incredible music. It's, you know, he rocks the turntables we like to say. Good job, Greg. Or whoever's doing it. All right. Here's what we're doing. Let's recap the week. I wrote the day. Excuse me, 51 point game on the day of 85. Nasdaq Rose 25. We're playing the game films. Going back, what did we learn from this week? How did you handle things? Buy or sell or sit on your hands? Did you lose sleep? Did you just brush it aside? Like, yeah, I don't care. I'm not retiring for, you know, 15, 20 years. It doesn't matter. Regardless of how you did, it's behind us. What can we learn from? That's what we're trying to help you with. So we went through again an explanation of one of the main catalysts of this week, which again was this thing called the carry trade. So we explained Jason primarily, you know, exactly what that was, what happened. Now, who were the culprits behind the carry trade that caused this extreme volatility? Well, it's Jason's old world when he was a hedge fund manager. So my friend, let's go into your old past and let's talk about what you would be doing right now on a Friday night at, you know, 640 p.m. Sitting back in Boston where you were and, you know, looking back on this week as a hedge fund manager, what in the heck would be going through your mind right now? What's going through, you know, your former counterparts minds? Yeah. I mean, again, it depends on strategies. It depends on a myriad of things. Do you have exposure to something like this? You know, we were never shorting yen to buy other things as a practice, but you know, the carry trade, ironically, is something that vocal Asian investors were to some extent incentivize. It was very commonplace. I mean, mom and pop, like, grandma and grandpa, like, this is not really just hedge funds. Oh, heck no. Like, this has been going on forever, right? Where they borrow, you know, sell your own currency that's losing value and buy other currencies and earn money and bonds. And yeah, I mean, this was very, very, very common. Are you going on margin like a typical short borrow? More so think of it in a situation where what is the process of buying a U.S. bond as a non-U.S. investor, right? Or let's think of what we do. If I'm going to go buy, let's go say I want to buy Japanese bonds, for example, what am I doing? I'm going to my favorite broker who can do it. And I buy yen because I have to spend yen to buy that bond. Well, in the process of buying yen, what am I selling? Dollars, right? I have dollars in my bank account. I sell my dollars. I do an FX to yen and I go buy Japanese bonds. So in that situation, I'm, you know, short dollars to long yen because I spend my yen and buy Japanese bonds. That's exactly what they're doing. You know, they're selling yen, buying dollars and then all and forever that trade worked because the yen's been losing value for 10 years, right? And so our bonds were paying more interest than there's were. So not only were you making money on the fact that your currency was weakening versus the one you owned, you're making more interest on the currency you own. And now it all of a sudden whipsaws that much in a, you know, a short period of time. And it hurts a lot of folks who, you know, have those trades on. And yes, I've never traded currency. So excuse my ignorance here. That's why you're the expert on this area. How did we, how did we as investors here in the US and the UNI as portfolio managers? How did we miss this, right? If this, like you just said, this has been going on for so long, we knew that Japan raised their interest rates. Why wasn't anybody, you know, calling the red lights, you know, flashing out there saying, hey, everybody, be careful. This is lurking out there. Yeah. So they were. I mean, again, the goofballs I listened to and watch have been talking about it for weeks and weeks. But, you know, nothing really matters until it matters, right? People like anything. I mean, the number of people calling for a recession for the last seven years, right? Like, you know, until it becomes a recession, like everyone who did their little parade this last week of, I told you the market was going to crash. I'm like, you've been saying that for the last 200% higher, right? Like, just because you're right today, you've been wrong long enough that you're wrong. But I think that's part of it. You know, people have talked about the carry trade on wine forever and the fact. I mean, how can the Japanese market have, you know, two plus x, the debt level that the US has, half of their ETFs are owned by the country, literally almost half of the ETFs in Japan are owned by the Japanese government, right? They have a demographic coming to this country. Yeah, they have a debt. Well, they have a demographic problem, right? And they've been what's called financing their debt forever is, you know, sort of monetizing the debt. And these things tend to turn ugly and fast, but it can take a long time before that tender sort of catches fire. So they, I think JP Morgan said three quarters of the trade is done. So, it's probably just the people that really needed to unwind it. Like, are three quarters of the people who had a yen carry trade on out of it? No, but I think the people who needed to get out of it, like a hedge fund, for example, who, you know, operates quarters at a time for performance. Yeah, they probably have exited stage left and licked their wounds. I've only heard of a couple sort of volatility based pads that blew up or, you know, sort of larger macro hedge funds that had some pain. I mean, we use some volatility or momentum following strategies here that took some pain because the yen's been going down, down, down, down, down forever. And when that reverses, it tends to reverse hard and fast and it can hurt you. But fortunately, they risk weight the portfolios enough that it doesn't destroy you. It just sucks. Right. And so that's, you know, those trades are in a lot of those trend following and, you know, futures based portfolios tend to have exposure to things like that. So it's, you know, it's normal, you know, you can be right for a long time, but there's just a little turn that hurts as trends reverse. Every time something like this happens that, you know, the word hedge or words, a hedge fund, you know, as part of this sentence as to the cause, you know, of course, the first thing that goes through my mind is is, you know, as you know, I always say, you know, it's the cockroach theory, right? How many, you see one cockroach until you turn off the lights and then the other's thousands of more out there, meaning got hit with this in loafers, you know, it tends to be those. Yeah, yeah, exactly. Meaning, you know, one hedge fund had a problem and did this, you know, if we're again, we're not saying this happened, but if one blows up, you can see, you know, having that domino effect to many others. And folks, if you don't believe us, hedge funds are extremely powerful, right? They, as we experienced someone, they can move the market in many times, you know, whether up or down based upon what they're doing, they're, they manage trillions and trillions of dollars and they're leveraged to the hilt as Jason has given some great educations to as far as, you know, the leverage side of things and how they operate. You and I are going to do a podcast. I'm telling you, I was joking with you at the break, we're going to do a podcast on your world of hedge funds, because I think people need to understand this dominant force in the market, right? It's not all about just, hey, did XYZ company make money at this quarter or last quarter? There's a lot of things folks that go on that you'll never know behind the scenes of Wall Street that move your 401k and your kids college education. And so it's a, it's a really fabulous time. And there's so many strat, I mean, hedge fund, you know, there's the citadels, the virtues out there, right? Like there's big statar, you know, firm statistical arbitrage market makers that do all the options trading, et cetera, like the, the high frequency trading, like they all back away too. And that's the part that tends to cause volatility. Remember, volatility is how much a price is going up or down, right? Or how, if you look at your favorite stock, if you go in and look at the ticker, right? If you're trading Microsoft, it's a penny wide. As in, you know, I'm just making up numbers here. 254.96 is the bid and 254.97 is the ask. That's a penny wide. Well, when stocks start to get volatile, the people who are bidding and asking start to move away, they start to make that spread be five cents wide or seven cents wide because they don't want to get run over. And a lot of the people that force those spreads as tight as they are are algos. These are just honestly machines that know all of the correlations inside of the market, how the ETFs work and how the indexes work and how the futures work. And so if this happens, this spread will change by this amount. Or if this person buys this many options in XYZ, it's going to move this stock four cents. Again, we could give a teach in on that, but that all blows out because they lack comfort. They don't want to sit there and get run over. So vol creates vol. It creates more people moving away. Just like anyone else would be like, Oh, my gosh, I don't want to trade in the market or I want to sell. They freak out market makers do too. So when things are calm, spread, stay tight. When things start to bang around, they don't want to get run over. So they move their markets, which then causes more volatility because every trade is up or down creates instead of a penny move. It's five cents or 10 cents or 20 cents. And that is magnified through every stock out there. And that's why the VIX blows out because spreads widen out options get wider. Everything gets more involved. It's going to say, yeah, the options spreads were unreal. This is unreal. And that's why is because why are they going to stand there and get run over in either direction? They want to make money. They make that's how they do it. They make money by picking you off by overpaying for options because you're trying to play momentum one way or the other. And then the option market makers, this is where they make their money isn't when spreads are wide because they know what the real price is and you don't. Good point. All right. We're going to come back and finish up our grading, looking at the game films of this week's market activity that let's wrap it up with Kristin Snow. She's in the Welcome back to the John Sanchez Show on Newstalk 780 K. Oh, which way Jason got him, Sanchez, wealth management. All right, Jason, explanation on the carry trade and the hedge funds and so on and so forth. Now, let's get down to what's going through everyone's mind right now. Back to you again, looking at the game film of this week. So the next question we want to answer or ask you and you need to answer actually is this, how did your portfolio hold up? Was it moving directly with the market, you know, when we were suffering our big losses, were you down the same amount, maybe more, were you down less? This is a great time to go back and evaluate as we keep discussing, we did a lot this week, diversification, right? We don't want everything to go up together in your portfolio. We don't want everything to go down. So how'd you do? Me? Oh, in German, add to it. Yeah, I know how you did. Yeah, we mentioned earlier this week that right industrials were up 1.2%. Energy was up 1.1%, financials were up 80 some odd basis points. You know, there's areas of the market that did well, right? And so that's the toughest part too. Even before the rally, we had the last couple, you know, day or two, those areas were up, right? So again, shines to diversification. You get into crowded trades like tech and AI and those sorts of things. They work really well, but you need to be cautious when they get too calm or too complacent. And you know, these are the times when it makes sense to look, do I have all of my eggs in one basket that this week caused me more angst than it should have? We talked about a volatility that was 2x normal. Do you feel comfortable being fully invested? If all continues that way, those are all things that you can certainly be thinking about. Absolutely. Did you buy in the dip or just sit on your hands? Again, doesn't matter what you did, but did you do something or did you do nothing? In other words, what was your plan, right? So again, look back. Some of the best times you can make money is of course getting in when the build is on fire. As I said at the beginning of the show, can go against you, right? Could have been a great buy-in opportunity in retrospect. It was for this week when the market was way down, but again, we've all experienced before getting in on the dip and it continues to dip and then fall really far. Oh my gosh. Yeah. Oh my God. The world's coming. Do it in. So another thing to take away from it. But you know, overall, do a self evaluation and purpose of tonight's show. Do a self evaluation of how you did overall, how you did mentally, how your portfolio did, and then don't be afraid to make any changes, right? These are little tests that we have to go through as investors. And the main thing is we always, always want to learn from them, right? That's one thing you and I always do, Jason. We learn every single day, do we not? Absolutely. You got to figure out what your strengths and weaknesses are. And like I said, you know, certainly harness your strengths and figure out ways to protect yourself from your weaknesses, and that works in this way and most others. Yeah, it's a good way to look at it. Hey, we got a little bit of inflationary data coming our way next week. We're going to be talking CPI, PPI, and, you know, not a lot of other crazy things. So it shouldn't be all that bad. No fed speak really to say the least. So get some rest, Jay, you deserve it. God bless everybody. Have a great weekend. We'll see you on Monday. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John at Sanchezwealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through Independent Financial Group LLC, a registered broker, dealer, and investment advisor. Remember, FINRA SIPC. Securities offered only in states John Sanchez is registered in. Sanchez Wealth Management LLC and Independent Financial Group LLC are unaffiliated entities. It is Ryan Seacrest here. Everybody needs some variety in life. That's what I love about Chumba Casino. They know how to keep things fresh and exciting. All their games are free to play. Like spin slots, bingo, and solitaire, you can claim free daily login bonuses too. And they release new games every week. So spice things up with Chumba Casino.com now for your chance to redeem some serious prizes. Sponsored by Chumba Casino. No purchase necessary. VGW Group. Void where prohibited by law. 18 plus terms and conditions apply.