The Jon Sanchez Show
09/27-How long can the winning streak last?
(speaking in foreign language) (speaking in foreign language) - Good Friday afternoon to you. Welcome to the John Sanchez Show on Newstalk 780k. It's a pleasure to be with you, TGIF. Great to be joined by my co-host, Mr. Jason Gones Sanchez, wealth management. How you be my friend? - I'm doing okay. It's Friday. We made it. How about you? - Made it through another one. Made it through another one. (laughing) - Amen. - Amen. Yeah, this is probably about two exclamation point. TGIF Friday. - Yeah, it wasn't too bad. - It did. - It wasn't too bad. It edged up for the week. And a lot of things to talk about. That's for sure. - Yeah. - That's why we're here. You like the emerging markets. It was your week, right? - Yeah, there you go. There you go. Yes, indeed. Yes, indeed. Hey, you know what? You won and I won because you love the emerging markets. I love the Dow Jones' official. - The Dow. - Hashtag winning. - Exactly. Hashtag winning. There you go. - Yeah. My favorite emerging markets ETF. I'm not going to say what it is, obviously. - Right. - Up 15.8% this year. - No kidding. - Yeah. Getting close. - That's a huge move. - Yeah. - I mean, this is probably going to drop about 8% next year. - Probably, yeah. (both laughing) - Well, that drop is exactly one thing that Jason and I are going to be talking about. You know, obviously we closed at record levels on the Dow Jones Industrial Average today, not the S&P yesterday closed at a record level. We're still a little bit of ways for the NASDAQ to close in record territory. But, you know, you may wonder, are we giddy as portfolio manager? Are we giddy? Are we excited? Are we just so thrilled about this? And to be honest with you, I think any good portfolio manager, and then I think we throw ourselves into that category, we get a little bit nervous, actually. We actually get a lot nervous when we're setting record after record after record. And tonight we'll kind of explain the reasons why, right? Our job, of course, is to worry so that our clients don't have to, so that they can go live the lives they want. They pay us to worry and handle those type of things for them. So that's what we take very, very seriously. But, you know, what was the catalyst this week? It was earnings, right? We had some very nice earnings numbers this week that really moved the markets higher in certain categories and overall the market. But really one of the major, major catalysts of this week, and we did not get a chance 'cause it has been such a busy week to really go into great detail about it. And we will tonight, and that is the Chinese stimulus plans that were announced this week. So earnings and stimulus plan, those are the main reasons. And we're gonna go through this Chinese stimulus plan. You may be wondering why are we gonna do this if you're not investing in, as Jason has mentioned, any emerging market, or, you know, in some of the ADRs, which are the American versions of the Chinese shares like Alibaba and some of those names like that. Well, the reason is, is because what China announced this week is really having a global impact for the positive, not only in our markets, but markets around the world. European markets closed at record levels, and like I said, we had a heck of a week ourselves. So we're gonna go through whether I think there's about four major points that China announced as far as, again, new stimulative measures. So we will talk about that. But then we're gonna kind of wrap up the show by really answering the question, how long can these winning days continue? So we're gonna review the indicators, go through the, what the market is telling us at this point, and kind of wrap things up for the week for you to, again, get ready for next week, right? We are already focusing on next week, and as we do each and every Friday, we like to kind of lay out any major earnings numbers, and of course the economic calendar, so that you can begin to position the portfolio in your strategies going forward for the next week. But Jason, let's start things up before we get to EM, and China, and so on and so forth. Let's go through what happened today. - Yeah, I mean, well, today was, we kind of were waiting with bated breath to see what the PCE results were, the Fed's favorite indicator, as you like to say, of inflation, and I would say it was not very flationary. I think we started to see this number, I mean, 2.2% year over year, I think, was the final number. Remember, the Fed's targets too. Guess what, we're there. I mean, if you want to round, we're there. And to some extent, whether it's a down-the-road sell-the-news event, but that is a reason why the Fed is cutting rates, what we're going to call aggressively, in that they cut 50 basis points, and at least betting markets think that they could cut another 50 basis points come November. And it's because they've been very restrictive, like we've talked about as restrictive as they've ever been, and going back to China, as you mentioned, now you've got arguably the two largest economies in the world, both looking to stimulate their economy, right? And again, I don't view what we're doing necessarily as trying to stimulate. I was using that analogy of taking your hands off of the neck of a marathon runner, more so than truly putting steroids into said marathon runner, whereas China, on the other hand, I would argue is facing more of a 2008 type situation, right? Where they've got a crumbling housing market, which is the core of their economy, even more so than ours. Their stock market is not what ours is in terms of the amount of, I would say, richness that people feel from it, right? They are more incentivized to invest in buying property and those torts of things with their excess savings, and that has created a massive boom, and feel free to go on YouTube and watch the litany of ghost towns that are in China, and we're knocking this one down. They obviously, we all know, do things a little differently than we do, disagree or not, right? But they have come out this week and made some pretty stern promises, which again, we'll get into a little bit later around, looking to stimulate. So all things, I mean, gold and silver already were on their move higher, but they got another little press. But investors in China and broadly emerging markets have been very, very negative outside India, and this now really caught everyone wrong-sided, almost like the yen reversal caught everyone wrong-sided, with the carry trade. That's a lot of what happened. I mean, again, I can't say ETFs on the show because of restrictions, but pick your favorite China-based ETF, and it's up 15 to 20% in a week, right? Those, as we've talked about before, are not markets. Well, those moves aren't normally because of some normal, healthy digestion of news flow. That is people's short, wrong way faces torn off, right? And that's a lot of what we saw, but today was, I would say almost the end of the fluff. You had some of the areas, the technology, the semis were under pressure, I wouldn't say ugly, but just, you know, week today, and the more rate sensitive areas, small caps, energy, picked up their head a little bit. It's a, I'm gonna say it's a fun market right now. This is a, this is a traders market. This is more so macro and it's not just momentum by the thing that went up forever. I would argue it's more the other way. You need to go in and pick through the tea leaves and say, what do I think could happen if this happens? And I think, you know, it's gonna make for an exciting fourth quarter from a chess piece standpoint, right? Is it utilities? - Is it the fourth quarter is that gonna be exciting enough? - Right, oh yeah, the, what are we doing in November? - Yeah, yeah, exactly. - Right, but yeah, it's-- - We warned you, we warned you to buckle up for this last quarter. - This is why you, you know, this is why you pay the pros, but it's fun. - That's right. I mean, I, this is the part where we are in our keep, right? Is trying to dig through the minutia a bit. And that's sort of what we saw today in the markets, right? You had had some of the rotation of what has won, starting to move into what could win in a China stimulus interest rates lower type economy. - Well, you know what was amazing? Just one stock here in the US that everybody knows about that was a absolute beneficiary of the news that out of China was caterpillar, right? The, let's see, where did we finish that today? I didn't see-- - And you've been pounding the table in that name for a while, so I will give you those for that, for sure. - Yeah, thank you, thank you. Yeah, finished down 45 cents a day, but yesterday it closed at an all time high. And, you know, if you're, well, Jason, I'll give you guys a little hint here. One thing you can do among, you know, literally hundreds of indicators that he and I have to follow. But one thing you can really do, that's, it's kind of fun, actually, is to say, okay, what stock is a barometer of, pick your favorite poison? Yeah, the US economy, technology, in this case, global economic growth, right? And you turn to a company like Caterpillar, because obviously they're a behemoth, they're the market leader in what they do and most realms. And of course, it's pretty simple. You go, wait a minute here, if China is, we're gonna tell you all the details in a moment. If China announces all these different stimulus programs, as Jason just said, guess what? They're gonna be building a whole bunch of new homes and buildings and so on and so forth. At least that's what they say. And guess what? They're gonna need equipment to do it. Now, sure, you have Komatsu and, you know, some of the kind of Asian names in the construction equipment industry. But you also have, like I said, the behemoth of Caterpillar, which has a pretty strong market penetration. I think, if I remember, I think they're about a little over 20% market penetration in the Asian markets. And so, obviously, companies would have to buy, or most likely they will, new Caterpillar equipment. And therefore, that's why we saw the stock rise. So that's always a good way to kind of see what's going on in certain industries, et cetera. Again, just kind of pick the big boy or the big girl in that industry and go, okay, what's the reaction? What's the market reaction? Or what's the market predicting that's gonna go on? And you go, oh, okay, yeah, they're gonna need a whole bunch of that. Oh, by the way, as Jason mentioned earlier in the week, they may need a whole bunch of oil. But again, we're sure both still scratching our head while oil prices are not-- Well, we did find out a little more. Yeah, we did find a little bit more of the Saudi cuts, by and large, the chatter was that they weren't no longer looking at a $100 oil as a thought. There were a couple of Libya. There's some oil that's coming online there. Again, sort of as I've said, I'm more of the opinion that as much as people think OPEC is this out of the other, they do a pretty darn good job of forecasting demand, right? They do, they-- But they should think they kinda create the demand, though. Oh, of course, well, they create? They try to toil, you know, it's really, in most of those countries, the only asset they have, but more often than not, I feel like when they're making cuts, three to four months down the line, you actually see, you know, some sort of pullback in the economies of the globe. And same flip side when they're increasing supply on the flip side, things down the road tend to actually act better. They're doing a little bit more than, I'd say, kind of throwing the thumb on the scale. But back to your cat tractor, remember the bi-nomics, the infrastructure, inflation, protection act, whatever the heck it's called, that sucker's in full steam right now. It is. It's driving on the highways. Exactly, and so that also is another tailwind for cat, right? It's, you know, and that's why I tell folks all the time, that the Fed cuts rates today, it takes nine to 12 months, much like the Infrastructure Act that happened three years ago, is really starting to come into speed full circle here, obviously, ahead of the election. But, you know, these things take a lot of time before they filter into the real economy. Yeah, they really do. And I'll tell you, because I do own a lot of cat products in Kamatsu, try to, A, find a part, B, try to find a new or a used unit. I mean, pick your poison, whether it's a backhoe or a excavator, whatever the case is. They're very, very, very difficult to come by right now, because there is such a demand. And, you know, again, that's why the stock is, like I said, closing an all-time high yesterday. So, it's a fun story, it really is. And so, when we come back from this break, we'll, of course, tell you what the markets did, and then we're gonna get into this Chinese stimulative program that was announced this week. And, again, there's a number of different things they did. And then we'll kind of bring it back here to the US and say, "Okay, how can this impact us in our US stock market?" But in the meantime, let us turn it over to Kristin Snow. She sounds like a busy woman tonight. Kristin, how are you, my dear? Welcome back to the John Sanchez Show on News Talk 780KOH, with Jason Gunnar, Sanchez-Wolf Management. All right, here's how we finished up. As I mentioned, we mentioned earlier, it was a record-setting day again for the Dow Jones Industrial Library. Jason, we got a relish in this moment 'cause we get so immune. I always say this whenever we're on an upward momentum of markets and we, again, get to say, "Record close, record close." I always have to take a deep breath, sit back and say, "There's gonna be times when we're gonna look back on September 27th when I said, "Oh, another record-setting day for the Dow," or whatever the industry may be when we're plunging or selling off day after day after day. So, like any good news, folks, absorb it, enjoy it while we can't 'cause it isn't always gonna be this way. Yeah, I've expected up 10% today. I saw that, I know it's amazing. And again, it's, remember, what happens in the next 30 days, raw giver tech, right? You've got the election madness coming too, right? So that's a little bit of what's starting to price in is election volatility, right? But to see a market that was buying large flat and the VIX picked up 10%, that at least something to be notable of, like you mentioned, when you're high, it's not normally what you see. Exactly, exactly. All right, so again, a 138 gain on the Dow, the Nasdaq fell 71 points, 0.39% and the S&P lower by seven points, just not too far off of a record finish there, which had achieved yesterday. Hey, for the week, not too shabby whatsoever. Russell struggled a little bit, finished down just fractionally for the week, 14 basis points. S&P was up 0.62% for the week. The Dow rose 0.59 and the Nasdaq 0.95. You know, solid return numbers here. Again, we had a lot of volatility this week, but nothing compared to, again, the Chinese markets. I didn't get a chance, Jason, maybe you don't have to top your head with the Shanghai index did overall for the week or Heng Seng for Hong Kong. 'Cause I think Hong Kong actually had a higher percentage gain if memory serves me correctly than even China did. But yeah, they were substantial. I mean, I'm going to guess probably 68% for the week. And more. Yeah, I'll dig it out. But I don't know. Yeah, dig it out, if you would. All right, perfect. All right, as far as the commodity side of things, so we rose 7/10 of a percent on a well, 68, 15 a barrel, even though more missiles flew, more tensions began to arise in Israel and Hamas, et cetera. So that one, again, has us, as we said earlier this week, has us scratching our heads as far as this world and not getting too concerned at this point. Gold, China, one of the reasons among a few others for another terror on the upside, $26.80 rise today, 2068.10. And believe it or not, we are actually very quiet in the bond market. Just a four basis point decline on the tenure at a finish of 3.75 today for the week up a whopping two basis points. So the bond market just did not budge whatsoever. It's just crazy, you know? Or do I, head them on the show, you know, obviously last night, and he was, he's just like, I'm gonna, I need, actually I brought up the idea because he said, I am getting so many phone calls of people saying, why are, you know, mortgage rates going up in the Fed cut interest rates? And he has to go into a spiel as to, you know, how it's working, why bond yields are going up, and even though the Fed cut rates, and it's a different type of rate and on and on and on. And I said, you know what, I'm gonna make a recording for you, Dwight, and you just, you know, send them a hyperlink to a recording, 'cause the poor guy doesn't beat up. The market is a discounting mechanism, right? It already front-ran that, what you tell them is, hey, rates were 7%, three, you know, three to six months ago. 8%, whatever, now they're six, right? Like they already front-ran what the Fed's going to do. If the Fed needs to do something more aggressive, then they'll go lower. But for now, remember that, you know, the tenure at 375 is way, way, way, way ahead of where the Fed even is, right? So it is, it's tough, obviously, in his business to think that, but, you know, I mean, six and a quarter is still pretty darn good when it was eight. - Yes it is. - Whatever, there you go. And you're never gonna see a three handle again, if you do something very, very bad, so. - I hear you. All right, so let's get into one of the major catalysts of this week, which as we mentioned earlier, it was the announcement, surprise announcement, as Jason said. The surprise announcement by China, the People's Bank of China, PBOC, Governor Pong Gong-chang, I'm just gonna refer to him as Governor Pong as I go through this, or Pam, excuse me. He, again, shocked the world with just a bazooka, a bazooka of stimulus measures that I think a lot of you may not have any idea what they did. And so what Jason and I are gonna do is we're gonna go through, no, probably have to wait 'til after the break now, go through these, again, there's a handful of them. And what we're gonna do is we're gonna talk about the impact, not only in the Chinese and the Asian and the global markets, but again, most importantly, what you care about is the impact here in the US, because these were some very, very substantial announcements. And you know, Jason, one thing I thought of, I don't know if you did, is we can fault China for many reasons, and everybody, like you said earlier, everybody has their personal opinions on data and things that come out of China. But I'll tell you one thing that they can do. And we're like a big oil tanker out in the ocean, right? If we're gonna make a change in our economy, it takes 15 miles for us to make a U-turn. China, even though they're the second largest economy in the world, they're more like a speedboat. When they wanna change something for the good or for the bad, they're a speedboat. They can just flip a U right there. And that's what these announcements happen this week. I mean, this economy over there can, again, largest, second largest in the world. They, when they wanna change something, they will change it and they will change it fast. And what my point of bringing that up is, it just goes to show that there are so many different measures that central banks around the world, in this case, again, the People's Bank of China, there are so many different measures and strategies and things around that the central banks can do. But here in the U.S., right, we're myopic. We focus on, oh, we need the Fed to cut Fed funds rate to lower interest rates and blah, blah, blah, blah, blah, no, no, no, this, listen, when we come back and we go through some of these things that the Chinese government announced, we literally can do the same thing here at home. We literally, among many thousands of other tools that the Fed has and other government entities, but this is shows that when a government wants to turn itself around, you know, it's not all about just turning it on the printing press. There's a significant amount of stimulus measures that can occur, so I think you're gonna be very surprised when you hear what the Chinese government does. Absolutely fascinating, hence why the market's rallied, like they did. All right, let's turn it over to Greg Neff. He's got news traffic and weather, hey, Greg. Welcome back to the John Sanchez Show on Newstalk 780KOH, it's with Jason Gont. Happy Friday to all of you. We finished with our record close on the Dow Jones Industrial Average today, 137 gain, closing at 42,313. NASDAQ lost 71, the S&P, it gave up seven points. All right, now we are gonna start exploring when the major catalyst this week of the market gains here at home, because it was a global bit of news, and that is, of course, with the People's Bank of China announced, again, nothing that is just, I mean, specific to them, but obviously ramifications around the world. Our market's rallied on the news, global market's rallied. Mr. Gont, how much did the Asian market's rally on this? Yeah, so, across Shanghai, Shenzhen and Hong Kong, it was like 10 to 12% in a week. Jeez, not bad. Real moves. In a week, yeah, yeah. Which isn't healthy, right? We don't, I mean, swell and all, but you'd rather, like I told you before, I'll take 11 weeks of 1% versus 1 week of 11, right? Just 'cause it tends to be more sustainable. I have a great note here from Reuters regarding, just a quick kind of breakdown, but, and I wanna highlight a part of it where it talks about Chinese local and government debt levels, and compare it with ours, just almost highlight, you know, oftentimes we're talking to folks in the office, et cetera, and obviously our debt levels are something that people are very concerned about. China has them too. It's not just US being the only drunk in the bar and everyone else is nice and clean. So, read here for a second, but given weak credit demand from households and businesses, investors are more focused on the fiscal measures that are widely expected to be announced in following days. Reuters reported on Thursday that one trillion yuan, due to be raised via special bonds, will be used to increase subsidies for consumer goods replacement programs for business equipment upgrades as well. They will also be used to provide a monthly allowance of 800 yuan or $114 per child to all households with two or more children excluding the first child. Remember, they thought it was a really swell idea to do the one child policy, and then it became, let's just have boys, and then all of a sudden they're like, wait, how does that birds and bees things work anyway? So, China aims to raise yet another trillion yuan via a separate debt issuance to help local governments tackle their debt problems. And then finally, another trillion yuan of capital into their biggest state banks, and here's the line I was talking about. Most of China's fiscal stimulus still goes into investment, but returns are dwindling and the spending has saddled local governments with $13 trillion of debt. The looming fiscal measures will mark a shift towards stimulating. A direction Beijing has said for more than a decade that it wants to take, but it made little progress on China's household spending is less than 40% of annual economic output, some 20 percentage points below the global average. So, I thought it was good color, just some of those things, but highlighting the debt levels. Like we have, again, I'm not saying that, hey, they're doing it too, it's fine, but this is not just a US issue of high spending versus income, and this is China, the second largest economy out there, pulling out-- - Vazookas. - Vazookas on top of it. - Yeah, exactly, communism at its finest. Okay, now I've got a little bit of stats before we get into the major areas that were announced this week. Did a little bit of digging at the break, Jason, 'cause I wanna see, I never really dug into how the Chinese mortgage market works, okay? So, keep this in mind, there currently is about $5.3 trillion worth of mortgages held by Chinese citizens, okay? Not a small market, by any means. They also have, you know, kind of like what we do, a 30 year mortgage, but some of these measures we're gonna talk about here in a second, they impact not only as I'll highlight here in a second, not only new buyers, but existing ones. The average person, the average mortgage holder in China, after these measures were announced this week, they're gonna see a reduction of their existing mortgage payment on average of 9%. So think about that for a second. - What? - Yes. - Yes, they're existing of-- - 9% of-- - 9% reduction. - So if they're paying 100 a year, they're paying $91 a year. - That's right. - Not the rate is going down, 9% and I'm like, "Oh my gosh." - Right, right. - Yeah, exactly. - Okay. - Yeah. So, you know, again, another stimulative measure. Now, newly issued mortgages, after the stimulus measures were announced this week, newly issued mortgages are gonna be quoted about the following here in a second. But first, right now, the average rate on a 30 year mortgage, this is again, before the measures come into play, is 4%, 4% on a 30 year mortgage, okay? Now, the newly issued mortgages, for first time buyers, are gonna be at 3.2%. If you're gonna buy a second home, you're gonna get a mortgage at 3.5%. And this is according to Real Estate Information Corp, as of September the 12th. So this was even before these measures were announced this week. So imagine those rates are gonna come down, even more we're gonna talk about, you know, again, some other mortgage stimulus measures. But isn't that fascinating that unlike here in the US, where you pay a higher mortgage rate usually for a second home, there's less. And the biggest thing is, again, existing mortgage holders will see their mortgage rate drop. So I guess they're almost, they must almost be like a variable rate loan, right? So they're gonna fluctuate because the stimulus measures rates are gonna come down, et cetera. So anyways, all right. So there's how the Real Estate Market works. Now, what did China announce this week that got the markets in the world so excited? So the first one, and we're gonna discuss these as we go through them, is what's called the Triple R Cut. Now, Triple R stands for the Reserve Requirement Ratio. So they're gonna, so this is the ratio. There's like what we have here at home. This is what the government tells the banks that you need to have in reserve, okay? You know, let's say for every $6 a deposit, you have to have a dollar in reserve, right? It's a real simple example there. So that's what Triple R means in China. So what they told the banks this week is, guess what? You can reduce your reserves by a half a percent in the near future. That is going to free up $142.21 billion in new lending. Now, depending upon the market liquidity situation later this year, the Triple R may be further lowered between a quarter percent to a half a percent, according to Mr. Pan. Comment. - That, you know, just adds liquidity to the economy, right? That's what they're trying to, you know, get things stimulated by getting a little more money sloshing around. - There you go. All right, next measure, rate cut. China Central Bank will cut seven-day reverse repo rates by two-tenths of a percent to one and a half percent. And reverse repos, again, they're like an overnight lending instrument. Again, it's just another liquidity measure. Comment. - That's what I would expect we would do very similar, yep. - There you go, okay. Now, reduction in existing mortgage rates. The Central Bank will guide commercial banks to reduce the interest rates on existing mortgages by half a percent on average in order to provide some relief to households. Mr. Pan expects the move will benefit around 50 million households, which will pay about 150 billion won less in interest a year. Down payment, another stimulative measure. China's gonna lower the minimum down payment to 15% for a second home buyer nationwide from the current requirement of 25%. - That's substantial. - Yeah, and that's what we talked about right there. Their investment, much more heavily favors that second home versus plowing money into a stock market, right, or, you know, some along those lines. - Absolutely. What they call the re-lending loan facility. The People's Bank of China's gonna allow commercial banks to use 100% from the 300 billion won re-lending loan facility to finance loans. They offer to state-owned firms for acquiring unsold flats for affordable housing up from 60% now. So, you know, in English, what that means is $300 billion of a slush fund that the commercial banks can lend out to state-owned firms to acquire, basically, we make it sound at this point, unsold real estate, right? So back to what you mentioned earlier, and we all know this, the ghost towns. I remember we had a client years ago, and he, obviously he was from here from Turkey, actually, and he became a teacher, an English teacher in China, and I remember when he came back for a visit and we sat down for an account review, and he was just showing me pictures. And first time I ever really saw it, you know, other than, obviously, on TV, of these massive cities that literally are a ghost town, literally a ghost town. And he said, "Yeah, it's real." He says, "You just drive around the countryside, "and there's thousands of homes that were built. "Nobody occupy 'em, big cities. "Nobody occupy 'em, they just absolutely." - Build it and hope that they will come. - And hope they will come, yes. But don't pay them enough so they can over to come. So go figure that one. - They just knock 'em over eventually, and let's try that again. - And then last point on that one is, on top of using the special purpose bonds for buying idle land, it's gonna consider allowing policy banks and commercial banks to provide lending for good quality corporates to acquire land from developers. The PBOC will also provide re-lending loans when necessary. So again, get out there, build, build, build, baby. All right, we'll come back and talk about their revision, or reviving of the stock market in China after these systemative measures are announced. Let's wrap it up with Kristen Snow in the right, not traffic center, Kristen. Welcome back to the John Sanchez Show on Newstalk 780K. Hey, I wanna give you a quick reminder, boy, October the 2nd, next Wednesday is approaching so rapidly. Why is that date so important? Because we want you to mark your calendar, and more importantly, we want you to join Jason and I, because we're gonna be giving you our next webinar. Are you 12 months away from retirement and wondering, what the heck do I do? What's next? How do I handle this? I don't have much time. Guess what, take a deep breath. We've got it all handled for you. We're gonna be covering so many things in this crucial one-year window, medical and life insurance, Medicare, filing for Social Security, asset protection strategies, tax strategies, sustainable retirement income strategies. The list goes on. Yes, we are gonna do all of this. Next Wednesday for you, just go to our website, Sanchez, wealthmanagement.com, click on the live events tab and sign up. Again, that'll be a webinar, 6.30 p.m. next Wednesday, October the 2nd. All right, we're talking about the different stimulus measures that were announced by China this week, and I wanna run through these real quickly. I'm gonna speed it up here a little bit, Jay, and then let you get to the calendar for next week. Got it here. So on the stock market side of things, I'm just gonna hit some of the high points. Basically what the government there is gonna start doing is what they're calling, optimize the registration of equity-focused, fund products, and promote the innovation of broad-range exchange-traded funds, ETFs, and other index products. So I thought that was interesting. Mm-hmm, yeah, and I mean third, Allah, Japan, right, getting involved with buying up products. A lot of similarities. I mean, David Tepper from Appaloosa was on this week, basically saying, buy everything at China right now. Like that your back stopped. Kinda similar to when the Fed came out and defended, saying they would do whatever you need to do to get things going. That's part of why the market did as well as it is, just for the thought that, you know, any weakness probably gets bought. Right, and you can find that interview at CNBC.com to that interview. All right, the last thing, funding for stock purchases, the People's Bank of China also introduced two new tools to boost the capital markets. The first one is a swap program with the initial size of about 500 billion won that will allow funds, insurers, and brokers easier access to funding in order to buy stocks. Okay, so here's some money, here's some money you can borrow. Second provides 300 billion won for the first batch of what they call cheap PBOC loans, people like China loans, to commercial banks to help them fund listed companies, share repurchase, and buyback. So again, if you're a publicly traded company there, you know, here's some cheap money you can borrow to go out and go buy some of your own shares. Why do you want to do that? Or what's the benefit there? Very simple, because again, the theory is, when companies go into the marketplace and buy back their own shares, A, it shows optimism about their own company to investors, and B, it creates a smaller float, which eventually, if everything holds equal, the share price should rise, and shareholders will be happy, and everybody will be dumping money into the stock market. So, Jason, bottom line, very, very powerful, stimulative measures, again, both globally and domestically, so it's gonna be fun to see how this pans out, and how much of it comes true, right? I mean, this is what it announces, no guarantee, of course, that they will follow through on everything. And what are the concerns, real quick, real quick, what are some of the concerns, right? Now you got China, who's a big buyer, what are we worried about inflation, right? So now you've got more consumption there. One of the biggest places that Chinese investors spend money is Japan. Remember, if you put a bunch of money into Japan, given their concerns about inflation already, what could that possibly do? Make Japan need to raise rates, which would be negative for the yen. So, it's not all positive if you're, you know, kind of taking the chip pieces down, but it's something that you can do the whole cycle. Absolutely, it's not just, yeah, you gotta sort of think what's gonna move. As far as next week, non-farm payroll on Fridays, obviously gonna be the big one, looking for 120,000 jobs, private at 105. We will get factory orders in ISM, non-manufacturing on Thursday. So back half of the week pretty loaded with some market moving data. So remember the VIX, up 10% today, saying, eh, something may be coming here soon. There you go, there you go. All right, my friend, excellent job as always. Have a great weekend, you too, everybody. God bless, we'll see you on Monday on the John Sanchez Show. Take care. 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