The Best One Yet - 🎈 “It’s a balloon, not a bubble” — What’s happening to stocks. Taco Bell’s business school. Insurance’s surveillance.

Episode Date: January 25, 2022

If you’re feeling pain in your portfolio, it’s because the stock market has dropped 10%. But don’t call it a bubble… it’s a balloon. Taco Bell just launched a business school (guac, like tuition, is still extra) because it’s pivoting to people. And we just had a record year of fatal car accidents in the US, so insurance companies are trying a new thing: Surveillance Insurance - you give up privacy, you get $$$.$YUM $ALL Got a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

Dude, what's with a button-up shirt? Like, you've been casual neck recently. Yeah, like, kind of like was like, I don't know, I was mixing it up from the T-shirts. Because I was wearing T-shirts on weekends, too. I was like, I just need to mix it up. I know what you mean. You want to wear something different of them. Yeah.

And like, I have all these in there and like they're dry cleaned. Like, I mean, I'm supposed to wear them. Here we go. Three, two. This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday, T-boy, Tuesday, January 25th.

Today's pod Snackers. It's the best one yet. TV-O-Y Jack, can we talk about the Momafuku pork shoulder? We almost forgot about the pork shoulder. Nick, happy belated birthday. I'm glad that that shredded pork dish was perfect for you. It melted like an ice cream. It was juicier than a jamba juice.

You were absolutely right. You got to cook this thing for like 14 hours. You ready to hit our first story? I'm still cooking this pork shoulder, but yeah, let's hit our first story. All right. Your portfolio is pulling a Marty McFly in back to the future. Another part of it probably just disappeared. Snackers, the entire U.S. stock market, it dropped 10%

at one point yesterday, but don't call it a bubble. The stock market right now is a balloon. A balloon, not a bubble. Second story, what do we got? Taco Bell is launching a business school. The mascot? Did you see this, Nick? It's actually two peppers with a flame in the middle.

Taco Bell's business school is Taco Bell's pivot to people. The guac? Is it extra? Instead of a Latin slogan, they have a Spanish. It's appropriate. For our third and final story, would you like to add some surveillance to that insurance plan? We got to talk about the privacy price tradeoff snackers.

you let them spy on you, you can save money. But Snackers, before we hit that wonderful mix of stories. Fantastic T-Boy Tuesday. This feels like a T-Boy Tuesday kind of day, Jack. In the real world, you already know this, Peloton has had some problems. Yeah, it has. Peloton stock is down 82% in the last year. The real world is killing Peloton stock.

In the fictional world, however, it's the opposite. Yeah, in the fictional world, Peloton is doing the killing. First, it was Mr. Big, who died in sex in the city after his 1,000. and thrive. I never forget. Mr. Big climbed his last hill. Last weekend, it happened again. Honestly, you can't make this up.

In billions, the finance drama on Showtime, they just used a Peloton as a weapon. Spoiler alert, Snackers, wags. He has a heart attack after a Peloton ride. So we got to ask T-Boy Tuesday question, who will be the next fictional character to fall victim to a Peloton attack? Harry Potter, how'd you get that forehead scar? Snacker Jeremy Bailing actually thinks Logan. and Roy from Succession will probably die on a Peloton in season four. It makes sense. It makes sense. Kendall's probably going to send his dad a Peloton for Father's Day

because if you know, you know. How about Emily and Paris? She could have a Peloton incident. Yeah, she could. Emily wouldn't die on a Peloton, but she would be very late to a wine tasting. Well, we all saw last week, the green Eminem. She changed her shoes after like 20 years. She got new bike sneakers so she could clip into a Peloton. But we already really actually know the next Peloton TV death. Snackers, Jack and I jumped in. Snack style, did a lot of whiteboarding on this.

And we believe the biggest fictional Peloton death of all is coming. Squid game. Squid game. A Peloton bike is going to be a life or death challenge on Squid Game season two. That's our prediction. Hey, Pelotaners, you're going to want to crank the dial up to 40 and 45 in the resistance. Player 4.56, turn up your resistance. But seriously, turn up your resistance.

If you go to 46, this will be your last round. Finish him. Who will be the next fictional character to die on a pelton? Tweet us at Robin Hood Snacks, at Jack Kramer, at Nick of New York. Is it going to be Jamie Tart or is it going to be Super Marr? Let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way.

The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robin Hood family. It's all informational just so. We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of a security. Right.

For our financial, LLC, member Fenra slash SIPC. For our first story, we're going to start with the pain. It's not just the extra risky growth stocks. The entire stock market was down 10%. Snackers, this isn't a bubble though. It's a balloon slowly leaking out all of our cash. Okay, your Monday morning starting out, you know, you've got an inbox. You're trying to get through it.

And then boom, the S&P 500 fell again on Monday. It was down 11% at one point from its December highs. Okay, that's bad. It was even worse for the tech stocks. The NASDAQ composite index was down 19% yesterday at one point from their November highs. Honestly, we were beginning research for this podcast. All the major stock indexes were down like really badly. So we decided we should cover it even though they eventually somehow ended up positive yesterday.

We don't know why. Rebounded like a young Charles Barkley. But Snackers, the situation is even worse for the rest. Renaissance IPO ETF, the fund that tracks companies that recently went public. Right. Recently IPOed companies are down even worse. They're down 42% from their highs of last year. Yeah, can we check in on our buddy, Ben, the Bitcoin?

How's Bitcoin doing? It's down 50%. It's Mojo got decentralized. All right. Let's look at the stock market scoreboard here. Overall, stocks just entered yesterday correction territory. Which means they're down 10% from their all-time highs. Tech stocks, they almost entered a bare market yesterday.

Which means they're down 20% from the market. their all-time highs. And for newly IPOed stocks and Bitcoin, they're already in that terrible bear market. Which means they're down over 20% from their all-time highs. Snackers for months and years even, commentators have wondered, is this stock market a bubble? Everyone's whispering these days. They're like, Apple, it jumped from $1 trillion to $3 trillion in less than three years. Must be a bubble. Rivian, you know, I heard they were worth $100 billion before they've even delivered a single car. This must be a bubble. Yeah, well, one commentator, like M.G. Siegler. He summed it up very nicely. They said the stock market is not a bubble. It's a

balloon. Snackers, what we're seeing right now isn't a pop. It's a drain. Since this downturn began in November, there hasn't been a single day that stocks have dropped more than 3.3%. Exactly. Instead, it's been a whole bunch of like smaller 1%, 2%, 3% losses. And they've all been spread out over three months. The result is something like this. That's the sound of your stock balloon losing air getting smaller. So Jack, what's the takeaway for our buddies over in every investor everywhere? Corrections are normal. Yeah, Snacker stocks. They go down sometimes. Like, you know, right now. But historically, they tend to go up. Take the NASDAQ, for instance. Since 1971, a correction like this, it's happened 66 times. We're talking 66 times. And yet, despite 66 times, the market has

lost 10% or more, it's up over 7,000% over that same period. This current correction, we told you last week why it's happening. Yeah, it's a combo of inflation and rising interest rates. It's scaring investors and you're thinking, you know what, maybe it's time to move some money away from stocks. Because stocks are like clothes and investors are refreshing their wardrobes for higher interest rates. They're putting away their gross stocks for the season. They're taking out the boring stocks, you know, straight out of storage. Snackers, this is a stock market correction and corrections are normal. All 67 of them. For our second story, this one's wild, Taco Bell is launching a business score. The Taco Bell MBA. It's the biggest step yet in the pivot to the people.

Okay, Snackers, if you were eating food last year and we assume you ate food last year, the big challenge for the companies was menu innovation. It was the food, the actual material. Supply chain issues, shortages. Their other issue they were having trouble with was customers. Well, tables had to be distanced and who wants to eat when you have a mask? They got to get you out of your home. Well, this year, the problem facing fast food is people. At Taco Bell, there's not enough Larry's to slice that lettuce. for your taco. I mean, Jack, there's some locations. They're closing down because they don't have enough patties to poach the pollo. So Taco Bell's launching a business school, an MBA in ground beef.

It's taught by Professor Al Pastor. We're checking the U.S. News and World Report. It's ranked number one in the delicious category. Your section's going to get together to discuss the case study on Saracha. Jack, when you do get the diploma, though, the good news is it's wrapped like a soft burrito. So it's easy to take home with it. They wrap it up to go. They got it. Now, Taco Bell Business School isn't. for all 300, 10,000 Taco Bell employees. It's just for the bosses. Yeah, the first class actually begins next month.

This is a six-week boot camp in financing, marketing, HR. We're talking the whole juicy core curriculum. Right. Taco Bell scholarships are going to pay for all of these classes, and it includes some really sweet Taco Bell U swag. The Gwack is going to be extra. But, like, if you don't have the, like, Warden University of Michigan Ross, business school, crew neck sweatshirt, did you even go to the business school? No, you didn't.

But this actually is not Taco Bell universe. It's really a partnership with the University of Louisville for actual U-Louisville business goal courses. Yes, these are legit courses. And it's intended for the managers at the Taco Bells. Now, Jack and I jumped at Snack style. 93% of Taco Bells, they're franchises. They're owned by a small business person. Right.

So Taco Bell University is going to teach these small business people the skills to operate an entire Taco Bell restaurant. So here's what Jack and I found fascinating about this. Taco Bell says all employees are. technically eligible for the Taco Bell Business School, but they only expect those in higher management positions to get accepted. So does this really have value for your average Taco Bell worker? Jack, what's the Taco Takeaway for our buddies over at Taco Bell? On Teaboy Tuesday? Please, Jack. Good external marketing. It's also good internal marketing. Snackers, yesterday, Jack and I were telling you about how the great resignation could lead to the great raise.

Right. To keep workers from flipping over to a competitor, profit flush companies should offer you a raise to keep you. Well, we're thinking there's another way companies can pivot to their people. And that way is to excite employees. Taco Bell Business School, it's basically just a sexier version of management training. You got a 28 year old with no degree who's getting educated by the University of Louisville. And all of that is paid for by Taco Bell, Big Taco. That 28 year old isn't going to trade in the Taco Bell uniform for Wendy's right after they get their certificate. Exactly, especially they majored in Doritos Locos tacos. They're keeping that Taco Bell University hoodie for boosting internal marketing for the brand.

Taco Bell customers are saying the headline about Taco Bell University, but it's also aspirational for employees. It's not about the classes. This is about the internal message. That message is that Taco Bell invests in Team Taco Bell. Great marketing is external and internal. For our third and final story, a shocker, America has returned to the road more dangerously than ever,

so life insurance companies are trying a new strategy. You give them your drive. data. That's it. They give you a little money back. First of all, according to the transportation department, 2021, on pace to be the most fatal for car accidents since 2006. Even though we were driving less than before because of the pandemic, more people died in accidents in the first half of last year. Apparently, Snackers didn't matter you weren't driving to the office. You were too aggressive and you were too distracted. Maybe you were stressed out about some COVID thing. Maybe you had separation anxiety from TikTok. This is all terrible news for car insurance companies in addition to

humanity. Because they have to pay for damages and accidents. Oh, and it's also bad news for the life insurance companies. Yes, because they're actually paying for the record bad driving too. And that's why Jack and I got curious about this new thing from John Hancock, as in John Hancock, the huge signature, but also the huge or life insurance company. All right. Life insurance. Let's say you're 33 years old. Great age. You might get a life insurance policy from John Hancock, and you pay John Hancock 32 bucks a month for the next 30 years for that life insurance. But here's the thing. If you die any time in the next 30 years, John Hancock is going to have to make a payout.

That's right. If you die any time before you're 63 in this scenario, John Hancock is going to pay your family $500,000. That's how life insurance works. If so facto, early deaths, that's bad business for John Hancock. Early deaths is what breaks their business model. John Hancock wants to collect as many of those $32 month checks as possible. They want you living.

They're sending you smoothies. Ideally, you don't die at all for the whole 30 years. You live past 63 and they don't have to pay anybody $500,000. John's going to show up at your 63rd birthday and be like, hey, buddy, we made it. Let's embrace. We made it. Here we go. Okay.

Drink's on me. Now, this has led to a fascinating new thing. surveillance insurance, insuring by tracking. John Hancock doesn't like that news about the car accidents. They don't like these white knuckle drivers who are taking those dangerous passes. They're loving seatbelt Sally. They're treating their safe drivers better than anyone. John Hancock is looking for the customer who completely stops at every stop sign.

No rollers, no rollers. You can't roll through this thing. Even when there's no other car in sight, you're stopping. They saw that right on red, even though there was a sign that said no right on red. And to attract those safe drivers, John Hancock is partnering with Allstate's car insurance business to use their surveillance technology. So here's how this goes down. If you agree to let John Hancock track your driving via Allstate's app, they're going to offer you a lower rate as long as you're a safe drive. Because that helps you get to your 63rd birthday. So Jack, what's the takeaway for our buddies over in the entire insurance industry? The unspoken tradeoff of this economy, privacy and price.

Yeah, Snackers, that's not the only insurance discount out there because they're also giving them out to like healthy eat. frequent exercises, the people who drop in on the routine medical checkups. How does John Hancock know that you do all these things? Because you have to tell them. They track your activities in an app. They know when you get that thing on your thigh. As human beings, we have an instinctual desire to protect those details about the things on your thigh and other sensitive personal data.

But here's the new trend. If you give it to a corporation, there may be a lower price for you in store. For example, you pay nothing to Facebook because they use your personal data to make money. And you pay Allstate less because you let them watch your driving. And you can pay John Hancock less because you let them see your morning power walk and oatmeal bowl routine. If you're willing to give up privacy, you can often pay a lower price. Because privacy and price, it's a tradeoff. Jack, can you whip up the T-Boy Tuesday takeaways for us over there?

Stocks fell yesterday morning, reaching at one point down 11% from their highs. Yeah, it's even worse for tech stocks and worse for Bitcoin, but corrections, they're normal. For our second story, Taco Bell Business School, it's intended for the managers. Yeah, but great external marketing is also great internal marketing. And our third and final story is that John Hancock is partnering with Allstate to watch your drive. Yeah, that's the tradeoff in this economy. You give up some privacy.

You often get a lower price. Now, time for our snack fact of the day. This one sent in by Scott Rothschild from lovely Arlington, Virginia. Only one YouTube video ever has reached 10 billion views. Yeah, you probably think you've seen it. You're going through your mind right now, all the YouTube videos, you've seen so many of them. This just happened last week, though. 10 billion views is more than one view per human.

Yeah, it's more than one lift, basically, is what we're trying to say. Yes, it is. That video that got 10 billion views is Baby Shark. Baby Shark, we're not going to say the lyrics here, but, you know, highest ratio of views to lyrics of any song in history. It's basically just one stanza on repeat. And the one stanza is like two words. I really the takeaway here is parents are probably not surprised, but like everyone else

completely surprised. I'm not surprised. Okay, yeah, you're not surprised. Snackers, you look fantastic today. Remember, our T-Boy Tuesday question for you to tweet us on Twitter. What is the next fictional TV character who's going to be hurt on a Peloton? Hit us up at Robin Hood Snacks at Nick of New York or at Jack Cramer. You think it's going to be Cousin Greg? I feel like this is something Cousin Greg would do. No, he's going to use a Peloton to get a promotion. Peloton. You're going to want to become friends with Cousin' Greg. Nick and I, Snackers, we'll see you tomorrow. Can't wait.

And before we go, congratulations to two snackers, Kristen Bill, who've been working at hospitals and just got engaged after two years of snacking. Happy 25th birthday that Charlie, Dallas, Texas. And Francis over in Long Island City. Happy birthday to Nishan Singh in Deradun, India. And Ken Delaney down in Austin. And Chavon Kostla in Punjab, India. And Tyler Squara turned in 26 over in Southampton, New Jersey. Happy birthday, E.C. Sampson in New Jersey.

And, gee, Whitehead. Enjoy that 42nd. in Syracuse, New York. And to anyone else celebrate something today, make it a T-Boy. Celebrate the wins. This is Jack. Nick and I both own stock of Pelton and some Bitcoin and Nick own stock of Apple. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are

associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinood Markets Inc, Robintoe Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principle and past performance does not guarantee future results.

Robin Hood Financial LLC, member FINRA, SIPC. Turn up your resistance.