The Best One Yet - 🛞 “Reinventing the Wheel” — The Tire Industry’s surprise win. Stanley’s pivot to dudes. The Fed’s interest rate holiday.

Episode Date: March 21, 2024

The EPA just set new rules that effectively require car companies to go 50% electric by 2030 — But the surprise winner of the electric car EV boom is tires. Stanley’s 40 ounce tumblers are viral with women, but now the company wants to expand to men — Ironic, because for 100 years Stanley only sold to men. The Federal Reserve just announced they were not changing interest rates, but predict 3 cuts by the end of the year — it got us thinking about the 1 big economic cost of the pandemic: inflation.March Madness begins today. Know where that term came from? We’ll tell you the etymology.$RDDT $GT $MGDDYSubscribe to our newsletter: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on Youtube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Thursday, the new Friday, March 21st. And today's pot. Today's pod. It is a newsy pot. It is the best one yet. Nick and I are whipping up the top three pop business news stories you need to know today.

But first, Jack, the biggest thing today, uh, Reddit IPO. It's happening like now. Right. The website that created Wall Street bets can now be bet on on Wall Street. The stock could go up. It could go down. It could be meme stock to the moon like a game stock, AMC. We'll cover Reddit's first day of trading on the New York Stock Exchange in tomorrow's pie.

In the meantime, we've got a wonderful show, fantastic show. Jack, what are our three stories for today's T-boy? For our first story, the Federal Reserve just announced that it's not changing interest rates right now. But the Fed is changing something. It's changing the thing, and that thing is a great thing for our economy. For our second story, it's Stanley. Sales of the Viral Water Cup quadrupled last year, thanks to female customers. So what's its next move next?

Jack, Stanley's next move is the dude mug. Stanley is pivoting to men. For our third and final story, the EPA just announced rules that will electrify half of America's new cars by 2030. But the biggest surprise winner of the electric car industry? Who is it, Jack? Tires. It's the tire industry. That's the big winner here.

That electric car story is about tires. But yet is, before we hit that wonderful mix of stories. What a wild mix of stories on a huge day. I love the mix, Jack. The brackets are locked. Tip off is tonight. You just drop 20 bucks into your office pool. Make it 30.

And your buddy Tim, who just Venmo requested you for those 20 bucks. Yeah, with like a little basketball emoji. Yet he's March Madness, it starts today. But your bracket, it's already busted. Tournament hasn't even begun. Pretty sure Caitlin Clark already beat Purdue, didn't she? I think she won the whole thing.

But yet he's Jack and I, we got curious about March Madness. Specifically, we got curious about the term March Madden. Where did March Madness the term come from? Guess what? The NCAA did not invent March Madness. It turns out March Madness first appeared in 1939, way before the NCAA basketball tournament called itself that. Back in 1939, an Illinois high school teacher used the term March Madness to describe a local team. But 1939 wasn't the start of March Madness either. No, get this.

The phrase March Madness actually goes back to the 1800s. In the 1800s, March Madness was was a term just to describe the craziness of the seasons. March, it starts a winter, it ends with spring, and the month of March, it's madness. Your birthday's in March, it's madness. Yesterday I was wearing a t-shirt. Today, I got hit by a snow squall. No one knows what to wear in March.

You got to have two different wardrobes. But Yeties, March Madness, the journey doesn't stop at 1800. No, we dove in further T-boy style. And it turns out the phrase March Madness actually goes back to the 1500s. March Madness was first a reference to, rabbits mating. Yeah, in the 1500s, rabbits, they tend to mate in March, and those bunnies, they get a little crazy.

It's madness. So today, yeah, it is March Madness is a trademark term for the NCAA basketball tournament. We might get sued for saying it on this show. But 200 years ago, March Madness was about the weather. And 500 years ago was about rabbits. Jack, this March Madness history is absolute madness. No, no, no, no, Nick, the history of March Madness is madden. So, Yeti's best to luck with those brackets out there.

Good luck to the UVM basketball team who's playing the vaunted Duke Blue Devils Friday night. I'll be watching the game. Our money's on Jam U. In the meantime, Jack, let's hit our mad stories. 15 years before this song, two boys from the Northeast met in the dorm. They had an idea to cause a cultural storm. It's the best one yet, but the best is a norm. I don't even think they need to practice.

50% that's a fat tip. Tea boys sit. on your at list. If you know, you know, because we're ready to go. We can't wait no more. So just start the show. Start the show. First, a quick word from our sponsor.

For our first story, the big news yesterday was that the Fed made a huge announcement on interest rates. And here it is, here it is. No change. That's the big, huge news. That was it. That was it. There actually was one change, though.

A good change if you know where to look. Last week, Jack. And Jack and I shared a story with you about a White House proposal to boost the housing market, to get it going again. White House proposed $10,000 tax credits for first-time home buyers and $10,000 tax credits for starter home sellers. That'd be nice. But Jack, what's an even bigger thing that would not only help the housing market, but help

pretty much every industry in America? If we could lower interest rates. It is the Fed's benchmark interest rate, the borrowing rate, to borrow money. It's at 5.375%. That is high, Jack. That's the highest level we've had in this economy since the year 2001. Yet he's that high interest rate has a purpose, though, and that's why we have it right now. The Fed jacked up interest rates to slow down inflation by slowing our spending, to encourage us to save money instead. But the reality is that a high interest rate sting.

They're annoying. They're a party pooper. And that's what's led to a big question that everyone had yesterday. Yesterday, the Fed finished their two-day policy meeting, and we all want to know, will our central bank finally lower interest rates? We all wanted to know, Jerry, have we killed the inflation disease? Are we healthy enough for lower interest rates so it's easier for all of us to borrow money and spend money out there? And the answer from Dr. Jerome Powell yesterday, not quite. The Fed is keeping interest rates high.

No change to rates. Now, the Fed did say that inflation is dying, but they also said it's not dead yet. every year inflation is still at 3%. You're paying 3% more for things. And the Fed's goal is just 2% inflation. So interest rates are going to remain high for now to slow the economy so that we can get to that 2% inflation by the end of the year. But yet is Jack and I come bearing good news because the Fed did change one thing and it was a

very interesting specific thing. The Fed forecast that they're going to make three interest rate cuts by the end of this year. Three interest rate cuts sounds like an early birthday present. Jack, what is going to do you? What does it exactly mean for us? Let's work it down to you, Boy, town. If the Fed cuts interest rates three times by the end of the year, then everything when it comes to money, everything will be easier. If our central bank drops their benchmark borrowing rate, then the rates of car loans,

credit cards, mortgages, all those rates will drop too. And the stock markets love that rosy future picture. So yesterday, the S&P 500 rose to an all-time high on the Fed's news. We are now 10% higher than the peak we had previously in 2021. That is, investors don't love high interest rates today, but investors do love lower interest rates tomorrow. And that's what the Fed signal was coming yesterday. So, Jack, what's the takeaway for all our buddies over in the entire economy? The economic cost of the pandemic was one thing.

Inflation. Besties, four years ago, this month, the economy was shutting down. Four years ago, this month, we weren't just scared of a brand new pandemic. We were also scared of an awful and deep percentage. recession that we thought was coming. But it turns out that recession was just a blip. Congress spent big money to save the economy. The Fed dropped interest rates to make spending easier. And the science community made a vaccine in record speed. Well, fast forward four years. And today, we're enjoying record high stock prices, record low unemployment and the best GDP growth in the

developed world. The biggest economic damage of the pandemic was one thing, a couple years of inflation. And yeah, considering how we felt four years ago, go, that's incredible. For our second story, the Stanley Tumbler, the viral water bottle among women now wants to go after guys. Stanley is about to launch a dude mug. Full disclosure, Eddie, this is Nick, that is Jack, and Jack owns like a team of Stanley mugs, don't you, Jack? There are several of these $45 tumblers in the Kravichie Kramer household.

Jack keeps him like hostage in his house. Honestly, Jack's either drinking out of his Stanley or peeing because he drank so much out of the Stanley. I don't drink water unless I drink 40 ounces of water. Well, yeah, we're both guys. We both like the look of Stanley tumblers. But the reality is that the Stanley mug is specifically marketed to women. It's basically 40 ounces of estrogen. And that was actually on purpose because four years ago, Stanley hired the chief marketing officer of Crocs.

He told the whole company that henceforth, Stanley is a girl band. Get this. His first move running Stanley was to change the language about how they talked about the product to really to focus it on women. That's right. They use a female pronoun when referring to customers at Stanley. Internally at Stanley, they always say she when they're describing their customers. Because four years ago, they noticed their brand was connecting with moms in Utah who were sharing pictures and videos of their mugs on TikTok. So Stanley blew this up and they hired a bunch of female influencers to really hone in on this opportunity. To try to connect with other moms outside of Utah who would share their mugs on TikTok. TikTok. Which led to new colors for the first time in 50 years, and that drove Stanley.

Orchid, rose quartz, lavender, you know the story. Yeah, the colors that pair with Pilates, added all up, and millennial mom saved Stanley. Sales of this cup hit $750 million last year. That is 10 times higher than three years ago. And the newest Stanley product, what is it, Jack? They have a Stanley mug with a built-in pocketbook. Like there's a zipper. You can put your cards and your things in there. It's like a purse with a... The mug. It looks like you're going to a vogue photo shoot with Amy Lebovitz. I think it's got a shoulder strap. But yet he's now makes the newest news from Stanley all the more shocking.

Stanley is now pivoting again to include men. Stanley doesn't just want cup girlies. Stanley now wants mug dudes. According to the Wall Street Journal, executives are worried that they're only satisfying the thirst of half of the human population. They're missing their entire male market. So they want to sprinkle on a little Y chromosome onto their mugs. They want to focus next year on launching.

versions for men, and that is a different style. The Wall Street Journal quoted a vice president at Stanley who said this, men want a fundamentally different product. She said that he is not a fashionista. He likes sports, which I feel, you know, Jack and I like the current assortment, but okay, that's a generalization. We'll take it. She said that Stanley should start targeting men who care how they look,

but want a more subtle look than the brightly colored flasks Stanley is now known for. So yet he's later this year, look out for Stanley tumblers that are a little more masculine. Is that cup Tiger Lily Red? No, it is Atlanta Falcons Red. Is that a brown straw coming out of it? No, that's a hockey stick. I'm sorry, Jack, is that a mustache on your Stanley?

Ted Lassau Edition? It's the limited edition, Ron Swanson Edition. Now, Nick, this is hilariously ironic. We covered it on this pod before. For a hundred years from 1913 until recently, Stanley was specifically designed for hardworking men. Stanley had one version. And the hammer tone green metal canteen you'd wear on like the way to the oil rig.

It was the blue collars water hydration thing. But then four years ago, Stanley pivoted to women. And now they're pivoting back to men. It's like for a hundred years, Stanley was an all-boy school. And then they became an all-girls school. And now they want to be co-act. Stanley has become the vassar of water mugs. So Jack, what's the takeaway for our buddies?

Vassar started as old boys. Sorry to fact, check there. Otherwise, immaculate. been out. So Jack, what's the takeaway for our buddies over at Stanley? One size doesn't influence all. Yety, Stanley's pivot reveals something interesting, how marketing connects to men differently from women.

So Stanley's not just going to change the physical mug product. They're also going to have to change how they talk to customers in their marketing. According to a media executive cited by this Wall Street Journal article, women tend to track personalities and influencers, while men tend to track. interests and teams. Women tend to follow specific people on social media. Men tend to just follow whatever comes up in their feed. And women follow their favorite influencer across platforms while men stay on one platform. Add it all up and the Stanley team is going to need a completely different marketing approach in order to reach men. And that's what we found fascinating about this story. The

Dude Mug, it reveals a nuance in marketing. One size doesn't influence all. Now a quick word from our sponsor. For our third and final story, the United States just finalized a major rule on electric cars. But guess who is the biggest winner of the electric car industry? Tires. But, you guys, if we're going to tell the story, we're going to start with the thermometer. 2023 was officially the hottest year in the world of recorded history. I think it's awful up here in Vermont.

We got so little snow this year because the winter was five degrees warmer than the historical average. And the single biggest source of greenhouse gases in America contributing to that are cars and transportation. So here comes the big news from the White House yesterday. The EPA just said a new rule that will change the entire car industry. The new EPA rules that were announced yesterday require carmakers to reduce their tailpipe emissions across their whole fleet. Carmakers must have, get this, 50% of new cars sold be electric by 2030. That is way up from the 7.6% of new cars sold last year that were electric. Now, 50% of cars, electric by 2030, that's actually a little slower than the government first signal. Because Americans have been slower to buy EVs than we expect it.

But it's still good news for Mother Earth. But you know who it's even better news for, Nick? Who is it, Jack? Surprisingly, the tire industry. The tire industry, because the tire industry loves electric vehicles. The wheels go round and round. This is Jack, that's Nick, and we both own dinkmobiles. We both drive electric compact SUVs. Yeah, we do. Jack's got an electric Volkswagen. I've got an electric Tesla Model Y, and we're both going to share a few secrets about what it's like owning these cars relevant to this story. We're going to share some good surprises and some bad surprises about our EV experiences. Jack, let's start with the good quickly first. This car needs like no maintenance. You don't need an oil change after 10,000 miles. You don't need anything after 10,000

miles. Electric motor, it's like a phone. You just boom, plug it in and you see it the next day. It turns on. But the bad, Jack, Jack, what is the bad part? The bad surprise is tires. Nick and I have both had to replace our tires after less than 20,000 miles. Jack, I had to replace one a couple months ago. $400 tire? Our tires supposed to go 55,000 miles.

Mine went like 15. And why do electric vehicle owners have to replace their tires so frequently, Jack? Because electric cars are heavy. They're very heavy. Because of that huge battery underneath the seats. Yeties, get this. The Ford F-150 electric truck is 50. 1,500 pounds heavier than the regular Ford truck.

Tesla's electric cyber truck weighs 7,000 pounds. Jack, could you sprinkle on some context for us over there, please? That's more than two Honda Civics. Live with your legs, not your back, Jack. And that extra weight from the electric battery wears down the tires quicker. Also, electric cars accelerate faster, and that affects the tires too. Heavyer weight, faster acceleration, an EV owner has to replace their tires 20% more often than a combustible engine owner.

Jack, I'm sorry, you're going to have to pump the brakes for a. second. Can you repeat that stat for the Yetis out there? If you own electric car, you should expect to have to replace your tires 20% more frequently than a regular car. And besties, that is why the tire industry looks at electric vehicles and sees tire sales growing 20% in the future. The tire industry is piggybacking on the EV industry. Yeah, the Michelin man just popped some champagne, Jack. He did. He's French, isn't he? Wee, so Jack, what's the takeaway for all our buddies in the tire industry? After 100 years, the tire just went from commodity to crucial. Yet is currently only half of Americans consider the tire brand when buying a new tire.

But it's different for electric car owners because your tire selection is crucial for your car's range. Because friction or lack of friction affects an electric vehicles range by 10 to 15% according to Michelin. So the best tire increases in electric cars range by 15% compared to the worst tire. Now, yeah, it is with gas powered cars, tires were pretty much a commodity. Just like, give me the lowest price tire and I'll be out of here, man. But with electric cars, tires are crucial for range, and range is crucial for your car.

So car buyers have to be choosy with their tires. So, Jack, what's the result when it comes to tires in the electric vehicle industry? Electric car tires sell at a 50% higher price than tires for regular gas powered cars. Because you're willing to pay more for the tires that give you more range on an electric car. So add it all up, an electric vehicle future could mean 20% more tires sold at 50% higher tire prices. Jack, if you're a good year, that is a good year, man. That's a good year, man. Electric cars, they just turned the tire from a commodity to crucial.

Jack, can we say that the electric car just reinvented the wheel? I think that's a yes. Jack, could you whip up the takeaways for us for the new Friday? The Fed kept interest rates unchanged yesterday, but they forecast three cuts by the end of the year. Yeah, it is four years after the pandemic. The one big economic cost was inflation. For our second story, Stanley Mugs, which are so popular with women, are now going after men again. The dude mug, but one size doesn't influence all.

To get men, Stanley's going to have to change their marketing. And our third and final story, the EPA just finalized rules that effectively mean car companies have to go half electric by 2030. The big winner of electric vehicles, though, it's tires. Tires have gone from commodity to crucial. You're right, Nick. The electric car reinvented the wheel. And it only took a couple thousand years, Jack. But Yeties, this pod's not over yet.

Here's what else you need to know today. First, Paramount, the streamer in Hollywood movie studio just got an offer to be acquired by a private equity firm, Apollo. Yellowstone, CBS, and Comedy Central could move into private equity hands. if they accept the offer. A private equity firm would be an unceremonious exit, but the stock rose 12% and the Dutton Ranch may now be owned by a financial firm. Second, Intel, the chip company, was just awarded $8.5 billion in government money to build chip factories in Ohio, Oregon, Arizona, and New Mexico.

That $8.5 billion comes from the U.S. Chips and Science Act, which passed in 2022 and was meant to end our dependence on China and Taiwan for computer chips. Because NVIDIA and other chip companies, they only design the chips. They're made over in Asia. And finally, the U.S. is no longer in the club of the 20 happiest countries. We actually dropped to number 23. We're like right behind

Slovenia now. According to the Gallup World Happiness Report, Finland is the happiest country in the world. And then Denmark and Iceland. Like, the countries are cold, but the health insurance is free. And the sanas are everywhere. Oh, the sannas are fantastic. Who doesn't want a good schvitz?

Now, time for the best fact yet. This one sent in by Rob Yosway from lovely Lancaster, Pennsylvania. Last week, we told you that bananas have completely defied inflation for the past 20 years. Banana is still just 19 cents over at Trader Joe's. But another inflation defier? Printing papers at libraries. The library printer at the public libraries across New York, the cost to print one piece of paper is still just 10 cents. That's a third of the price at a printer copier shop like FedEx. Libraries, they are defying inflation with printers. If you got a book, trying to get published. You might want to get a library card. Yeties, you look fantastic today. And a great way you can help grow the show is to drop down and

give us five stars and leave a review. Jack and I love reading. We read every review. So if you love this show, we're waiting to read your review. Even if you just got advice on what next color Stanley Jack should get, we want to hear it in a review. We love reading that kind of review. Leave us a review. Nick and I, we'll see you tomorrow. Can't wait. And before we go, So, congratulations to Yeti Gage Winkler, the PE teacher in South Dakota, who ran his first 100-mile race in under 24 hours. Congratulations to Megan and Mark McDonald, who had their first baby in Chicago. The name is Rory Jack, and he looks fantastic. Happy six-year birthday to JetFri, who's turning six in Orange, California.

And Matilda Gillard is celebrating World Down Syndrome Day. She is home for spring break working on her culinary skills. And congratulations to Chinatessen. Anonzo Agbona and Virginia Lamb, who have a wedding this weekend. But they're driving to San Francisco City Hall to get married on those beautiful steps of that civic building. They just paid off their student loans. They're flying at Columbia for their honeymoon. And Jack, I'm pretty sure that's where you got married to.

Chinonzo in Virginia, I got my civic ceremony done at San Francisco City Hall as well. It looked amazing. This is Jack. I own stock of Crocs, and Nick and I both own ETFs of the S&P 500. Jack, this March Madness History is absolute madness Dude, if you're going to say that You got to get more maddened.

Jack, this March Madness History is absolute madness. Amp it up. Give me more. Jack, this March Madness history is absolute madness. I still feel like you're holding back. I don't want to figure out.

Jack, this March Madness history is absolute madness.