The Compound and Friends - The New Face of Wealth

Episode Date: January 14, 2022

On this week's episode of The Compound & Friends, Michael Batnick, Dasarte Yarnway, Emlen Mattingly, and Downtown Josh Brown discuss: inflation, how passive funds could be hiding a bear market, the Onyx Advisor Network for underrepresented financial advisors, the death of mutual funds, and much more! Thanks to Fundrise for sponsoring this episode. Visit fundrise.com/compound to learn more about the future of real estate investing! Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here: https://ritholtzwealth.com/disclosures/ Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

It was very 80s. Look at the traps, though. What are these called? What are these muscles called on you? Those traps. Look at the traps on this young man. Ooh. 1987.

Hold up. That's you? That's me. Ooh. There it is. There you go. I guess I didn't eat back then because that looks like a completely different. I mean, I'm obviously older, but.

So what are you guys doing while you're in town? This is pretty much it. After this, I've got to head back to the lady. We went to the game and I was sick. I thought I'd have a good dinner tonight. Where are you going? Any recommendations? What are you in the mood for?

Emlyn wants a steak. You want a steak? Yeah. Like for something that's like very New York, I was going to say Old Homestead on 9th Avenue. Keens,

which is right around here. We saw Keens. We're staying on West 37. Yo, Keens is like old school New York. Like Teddy Roosevelt used to eat there

when he was the chief of police. Literally, I think it's from the 1800s. It's one of the oldest steakhouses in the city. But Old Homestead is older. Where is Old Homestead? Downtown? Far west side.

9th Avenue. I'm saying it's real New York shit. Bobby Vans. There's like three of them, but there's one right over here on Park Avenue. But Keene's is... You will be into it. It seems small too, like a little boutique spot. It's two floors.

It's a big dining room. The other one, maybe for history's sake but probably not the best food sparks where uh sparks john gotti whacked uh castellano really yeah that's that's on uh that's in the east 40s okay or he's 50 did you listen to sam of the bull yet yeah i completed the the entire podcast did you what podcast is it it's called our thing okay the guy that was john gaudy's right hand man his hitman his hitman like his tells the story tells stories it's so f***ing insane is it the story about when they whacked the guy he's telling stories about literally committing murders where is this guy he's walking around on the street

well he's out now. He was a gentleman. But did you hear the Johnny Key story? Yeah. Was that insane? Because they also have the FBI guys come on who are now retired. Yeah. Like the FBI guys come and tell their side of it.

I don't know. I thought it was like the best thing I've ever heard. Is it just our story? Our thing. Our thing. Just crushed that on the plane ride home. Yeah. That's what I'm like.

Oh my God. Growth stocks are getting killed again Shopify's down 8% today was another disgusting did the Nasdaq close on the low? we're actually going to start with that how are we doing? are we rolling?

here we go and rates are coming down too so how do you explain that? it's not about rates anymore it's about margin calls. You better be ready with my music before he clicks that thing. I'm telling you right now. Dylan, coffee.

29. Welcome to The Compound and Friends. All opinions expressed by me, Michael Batnick, and our castmates are solely our own opinions and do not reflect the opinion of Ritholtz Wealth Management. This podcast is for informational purposes only and should not be relied upon for any investment decisions. Clients of Ritholtz Wealth Management may maintain positions in the securities discussed in this podcast. Today's episode is brought to you by Fundrise.

Fundrise makes high-end private market real estate investing effortless and accessible to everyone. Thanks to Fundrise, anyone can invest, accredited or not accredited, and you can manage your investments from your phone. Fundrise is the latest example of how technology can harness the power of large populations to disrupt institutions. With more than 1 million users and over $7 billion worth of assets transacted on, Fundrise is already the largest direct-to-investor real estate investor platform, and they're giving individuals the potential upside of an asset class that was mainly reserved

for institutions and high net worth individuals for decades. If you want to learn more, go to fundrise.com slash compound. Again, that's fundrise.com slash compound. Here we go. The guys came in from California for this. The guys came in from Fresno. All right. Where'd you fly in from? Sacramento. What's that? Sacramento. The only place with the worst franchise in hours.

Oh, man. True. How many flights, period, are there out of Fresno? It's not direct, right? No, I had to go. We flew into, where'd I go? Phoenix. Okay.

Went from Phoenix to here. All right, not so bad. No, not bad at all. I mean. It actually broke it up a little bit. It was nice. Get a little layover in Phoenix. Okay, not much to here. All right. Not so bad. No, not bad at all. I mean. It actually broke it up a little bit. It was nice. Get a little layover in Phoenix. Okay.

Not much to do in that airport. Nothing at all. Yeah. Nothing at all. I've been stranded in that airport. I speak from experience. All right. So NASDAQ stocks are getting destroyed.

But the first thing we should get into, I think this week looks like we're going to close below the 200 day in the NASDAQ for the first time since April of 2020. Am I lying about that? Heads up. I don't have my screen right now. Why don't you do an introduction? Introduction. So we're going to get into all that stuff.

But I'm very excited that you guys came in. And I want to introduce you for the audience. First things first, my friend Desarte Yarnway is here. And Desarte is the founder of the Birknell Financial Group. And how long has Birknell been around now? Started 2016. How's it going? It's going really well.

I'm reading about you, I feel like, on a weekly basis. You got a lot of press. I appreciate you. And Emlyn, you and I met for the first time today. Very nice to meet you. Nice to meet you as well. Emlyn Mattingly is with GenNext, and you are the founder? Yes, I am. Okay. When did you start the firm? 2017. Okay. Very cool. So all of us are founders here. All of us are RAA founders. You learn a lot on the job as a founder. What's been the most rewarding part of having your own firm versus working somewhere else? Making all the decisions.

Okay. Yeah. You know, being able to make the decisions I think are necessary to help the clients the way that I feel they need to be helped. Okay. Have you had it the other way around where you were watching somebody else make the decisions? Oh, yeah. No hesitation. No.

Yes. Years. Where were you before you started the firm? So I was at Principal. Years. Where were you before you started the firm? So I was at Principal. So I worked at Principal Financial for five years. And then before that, I was at EJ. And then before that, I was in banking. So I've always been told how to do, what to do, when to do it.

I was like, that's enough. I know. I had 10 years of that, and I was done. I was actually done after the first year, but I had no way out. Okay. And you guys, how'd you guys first, we're going to talk about, we're going to talk about what you're launching in a little while, but how did you guys originally hook up and meet and hit it off with each other? Like, what's the story behind that? Yeah, yeah.

It was the power of podcasting and social media. I feel like in this age, right, everything's flat. The world is flat. I can connect with you. I can connect with you, Michael. I can connect with you, Emlyn, right's flat. The world is flat. I can connect with you. I can connect with you, Michael. I can connect with you, Emlyn, right? So it's just super flat. So he reached out to me after listening to an episode of the then Young Money podcast, which was a book I wrote, spent it to a podcast.

It's like, yo, how are you doing this? Yeah. Right? And we had this conversation. How are you podcasting? How am I podcasting, right? Because Emlyn's got a hot podcast. Yeah, hot podcast now.

He was like, what are you doing? So I sent him literally the mic that I use, the system that I was using, right, how I edit and everything, and he started this podcast. And since then, we've kind of built this accountability slash community group. Wait, you weren't like, no, no, no, don't start a podcast. That's my thing. I got this. No, no, no. I'm sharing this, Kareem.

Listen, I'm with you, but a lot of people wouldn't be like, here's all this shit it took me all this time to figure out. Here, I'll just give it to you. So that was cool that you did that. You're like very baritone. You got a deep voice. Thank you, Michael. He's putting it on for you, too. And Emlyn, your podcast I listened to for the first time this week, and I thought it was really interesting.

How long have you been at it? How many episodes have you done? We had 130 drop to a day. It's amazing. It's amazing. Okay. how long have you been at it? How many episodes have you done? We had 130 drop today or Monday. It's amazing. Okay. What's the feedback like from the listeners? Like, are they telling you what they want more of,

what they want less of? Yeah, absolutely. You know, the listeners give me the feedback, you know, usually through the reviews, but I get to see a lot of feedback from people when I just run into them. But they're telling me, you know, they like what they're hearing.

We've had a crypto for common folk this week and got a lot of great stuff. That's what I listened to. I thought you did a good they're telling me, you know, they like what they're hearing. We had a crypto for common folk this week. Yeah. And got a lot of great stuff. That's what I listened to. I thought you did a good job. People really, you know, and so we had just a regular guy come on, right?

Because we can have someone that knows everything about crypto, but my client's been asking about it. And I was like, well, let me have someone that would tell it from their perspective. Yeah. Like from his perspective as how easy it was for him to get into it and what they should try to do

if they want to get into it. So immediately I was already getting feedback on that. That was great podcast. We want to, you know, and I got some people that are getting crypto now because of that. What are the types of episodes that do the best? Like,

is it, is it like getting a great guest that's already well known or is it the topic? Like what, what do you, do you even know what's going to be a hit? No, the whole podcast honestly is just,

it's like the hits, like I've had hits with big-name people. I've had hits where it's been me by myself. I've had hits – honestly, let's be – the biggest hits are the ones that I have my wife on. My wife's on the show. Why? You guys fight? She's a secret weapon. No, we don't fight because she wins. So it's just like –

Yeah, yeah. It's not really a fight. Not really a fight. But, I mean, it's just – I think it's just the dynamic of having both of us on there talking about money. And I think when you have couples doing that, right, this is always, you know, we know it's a touchy subject. So to have both of us on and, you know, my wife's a bank manager. And so, you know, she has a finance background too. So when we can sit there and talk and she can talk about what she's doing at work and I can talk about what's going on, we mix in what's going on with the family and the kids and all that stuff.

And people really like that. Those are probably the most listened to. You're giving people. So by doing that, you're giving people more of you than most people doing financial content and definitely stand out as a result of that. So was that premeditated or it just happened once and you were like, this is awesome. Let's do it again. It just kind of happened. Like everything that happens in the podcast up until this point has just been kind of like, I'll sit there and I'll have my moments and I'll be like, okay, let's do this. We did a series on financial planning, right? It was seven episodes and we did

every step of financial planning. What came from, I was just sitting there and I said, this, this might be good. Now, has every one of them turned out great? No, but I mean, some of the ideas have been really, really good. And that was one of them. When I had Madi come on the first time, it was just kind of, you know, just have her come on. And then we were like, let's try it again and just have her come on again. And then I started getting the feedback like, we love when your wife is on. I was like, oh, well then let's have her on more. And so that's, that's kind of how it happened. What's her name? Maricela Miles Mattingly. Okay. So it's going to become the Maricela podcast featuring Miles.

Emlyn. Yeah. Like that'll be the next phase. But I feel like you, it seems like you'dlyn, like that next phase. Uh, but I feel like you, you said it seems like you'd be okay with that. Absolutely. Oh, well you have no choice. So if that's what the crowd wants and you're doing, uh, to start to, you're doing mostly one-on-one interviews and I think you do a really good job with them. Thanks. So what are like the biggest, uh, episodes that you've done or the most meaningful episodes that you've done or the most meaningful episodes that you've done since you started yours? Yeah. I mean, I think there's a

place for having influencers right on the podcast, but the best episodes that I have are the most authentic ones, right? When I just cut it on and tell my pain points, my struggles, right. Or have somebody like this new stage that we were just talking about me having a kid. The last episode I had with Johansson Harrison, I was just telling him how anxious I was about the whole ordeal and how I plan on planning for this new child of mine. So I think the more authentic we can be, the better the content is. Yeah. You probably have a lot of listeners that are in the same boat. Either they just had a kid or they're about to.

It's universal, too. There are certain aspects of finance. You could do a podcast about crypto. It may It's universal too. Like there are certain aspects of finance. You could do a podcast about crypto. It may not be universal. But I feel like when you do that, you're really getting everybody. Everybody's at some phase of life where they can relate to like a podcast about that. For sure. So I think it's disarming for the people that typically listen to financial shows to hear

people really get into their own lives. But I think, again, I think it really makes you stand out. So that's why we're going to do a big expose about Michael's life later on. One thing we did that I forgot. Remember we started the, I had a,

we had a, a series within the series called we need to talk. I forgot about that. That came out. That was in 2020. Yeah, that was 2020. Yeah, it was Desarte, myself, Tyrone. I think I might've heard that.

And Sam Dean. That one was well-received. And so we did that. I did three series of that and that just came out of same thing. We love Sam. We were talking to Sam yesterday. Shout out to Sam Dean. Sam Dean.

Awesome. So I want to talk about a little bit of the wreckage in the market. And Desarte, you shared this thing about how passive ETFs are hiding a bear market in stocks. I could not agree more. Yeah. So when you look at your screen on a day like today, or not yesterday, but maybe the day before, whatever that really nasty day was this week, what's your opinion of what's going on? And what are you telling clients?

Stay put. I mean, sometimes the best decision is no, no action. Right. So a lot of the times people want to move. And I think that, especially for the people that I serve, right, they're young, they're ambitious, they're wealthy because they're working in tech, right? They're at Facebook, Netflix, everywhere up and down Silicon Valley. I was going to say this, this disproportionately is affecting the stocks that your clients- Hold. Or work for. Or work for, right? And you know, when you're working there, you're kind of drinking the Kool-Aid as well, right? So they like have a bunch of these shares.

And I'm like, stay put. This has happened before. But I thought that this was interesting because, I mean, a lot of what we're doing is ETF strategies, right? So you look across the top 10. In any of these funds, they're going to hold similar stuff, right? The Apples, the Googles, the Tefliks. Every ETF. They're in everything.

And when it said like 1% gain of the top 10 really accounts for a lot of the gain in the NASDAQ, right? That really stuck to me. So I thought it would be interesting to share. The top 10 stocks in the S&P 500 are a third of the index. So as long as Google, Microsoft, Apple, Tesla, NVIDIA have held up, it's been masking the real experience that people who own every other tech stock are going through, which is not quite as enjoyable. What's your takeaway from what's going on this week?

We've got Square closing at a 52-week low. Yep. Shopify, 52-week low closing. I mean, these were the darlings of last year. So we already saw the ones get hit, like DraftKings already got hit, but those are still crashing down 7% today. Zillow stopped crashing finally. Peloton crashing again 7%.

These names can't find the bottom. What's amazing to me is how there could be so much carnage and the index is still not even really reflecting it. When you say the index, are you talking about the S&P or the NASDAQ or what? I would say the S&P 500. It's still not really caught up with... I think the NASDAQ lost a trillion in value last week. And then this week is shaping up to be not much better. And it's really not showing up in the S&P because everything non-tech seems to be going up. Well, it's definitely not showing up

in the Dow, like at all. At all. The Dow is very cozy right now. Yeah. And that's in line with past NASDAQ crashes. The Dow has historically been okay. I mean, all you need to know is if you see these tech names crashing and you see consumer staples holding up, Pepsi hitting a 52-week high, that's not an exciting market. In fact, it's the opposite of exciting. Were you guys getting a lot of questions from clients about wanting to trade individual tech stocks and high-flying stocks like in 2020, 2021? For sure. Come on, man. Everybody wants the sexy stuff

right right like that's what they want to talk about that's what they want to like here's an etf and then what do they call you about they're like um but what about apple or my friends are getting these type of games you got apple yeah what do you i wanted to ask you a question about that because emlyn and i were just talking about direct indexing right like since we know right that one percent gain in the market accounts for most of it or it's one third as the article says like why not rip those names out and stack them on top of a core portfolio so i've been experimenting a lot with the core satellite strategy to see if that works what do you what do you kind of think about so what do you want to do with the core satellite

the core would stay the etf yeah and then what's in the satellite? Those top 10 names. Even more of them. Right. So the idea being that it's perhaps maybe a safer portfolio because it's the highest quality stocks. Overweighted? Kind of, yeah. Okay. Yeah, I haven't really thought much about it. I think one of the things that most advisors experienced over the last couple of years was like FOMO from their

clients. And that's, I mean, do you feel like that's gone? The FOMO? The FOMO, yeah. Well, there's nothing to feel like you're missing out of right now other than massive losses. So if you had clients like, why am I not in Cathie Wood? Why am I know loaded up in ethereum or whatever a lot of that fomo is gone yeah so the the arc genomic one arkg is i mean i think it's down 50 something percent right it's taking a beating 52 yeah 52 you know the problem with that is i was looking at that as like a like a fallen like something like maybe worth taking a shot on at some point. The number one holding in that is Teladoc, which I really don't think has anything to do with genomics right now.

And so I didn't even look any further past it. I just said, I'm not buying. I can't do it. XBI, the biotech, like the equal weight biotech index is down 42%. And fast. A lot of ugliness out there. I think the lesson that experienced investors were hoping got learned by new traders while they were experiencing it. They are on the other side of that right now.

Yeah, they are. Because the new traders are not in oil stocks and banks, which are going up. The new money that's coming to the market is predominantly in technology. You agree with that? Yeah. It's highly correlated to the NASDAQ, right? And what do you tell a person that just wants that, right? Because of the hype, because of the familiarity, right?

What do you tell those type of folks? They've never seen an environment where like insurance stocks are going up and chip stocks are going down until now berkshire hathaway by the way 52 week high there you go it's like the perfect it's like the perfect stock for this moment um one of the reasons why all this is going on with the high growth stocks is inflation and what the fed's response is going to be and this week powell was reconfirmed. He spoke to Congress and basically he said, we're going to do what we have to do. And now the debate on Wall Street is three rates or four or three hikes or four or maybe even five. What are your thoughts, Emlin, about

what's going on with inflation and the Fed and what are people asking you? People are. So with inflation in the Fed, I mean, I think absolutely something has to happen. We got to do something right. And people are asking questions just around like I get a lot of stuff about home purchases. People are asking because a lot of my clients are young. A lot of them are trying to buy homes. So they're asking about that. Should I wait? Should I wait? Should I purchase now? Mortgage rates, are they going to shoot up? So what are you telling them? So I'm telling them if you're in a position to buy, let's buy. Like it doesn't, like there's, if most of the people that I'm working with, we've already got, you know, the savings that they need and everything they have.

It's like, let's move forward. Let's make sure we can go ahead and get this. And we've been able to help them get into the houses that they want. That's mostly what my clients are asking about. Now, when it comes to their investments, absolutely, you know, just worried about bank money. I got a lot of people that had, you know, new investors coming in. Like we were talking about this the other day. There's 25,000 new investors that came into the market, right?

So when we have that, a lot of these people that are coming in have never had any market 25 million. 25 million. Sorry, not 25,000. 25 million. My bad. When I was saying to myself, did he have 25,000 clients? Yeah, yeah.

So when they're coming in and they're worried about the money that they've had in the bank, it's like we're talking strategies trying to help them get out of that. But you've got to ease them into it. Because a lot of these people, like, I'll talk a little bit about it later when we talk about some of this other stuff. But there's just a lot of talk around purchasing homes. Josh, have you gone to the grocery store lately? Everything is so expensive.

I'm in the grocery store a lot, and I almost never notice prices, but I definitely have. So I'm on a Whole30 diet, which means I'm not eating anything fun. So it's just like meat and vegetables. And black coffee. Bacon is up 18% year over year. Beef, like if you want to make a beef stew, literally up 20%. And eggs are up 11%. It's crazy.

And again, I don't notice the prices at the grocery store until I paid $11 for a pack of bacon. And I'm like, wait, wait, wait, what the fuck is this? What is this? Like my grocery bill was never, ever over $300. And now it's over $300. For sure. And that's at a regular supermarket.

That's not even Whole Foods. It's not even like an expensive one. Like North Shore Farms, like a regular grocery store, grocery store. That's wild. Well, here's the labor department on Wednesday put out CPI, consumer price. It rose 7% in December from the same month a year earlier. So that's a year over year, 7%. And it's up from a 6.8% growth rate in November over the prior November.

So it's the fastest pace of rising inflation since 1982. Month over month is slowing a little bit. Well, so I wanted to get into that, but it's the third straight month of north of 6%, which is why everyone's feeling it more and more. Not great, Bob. So I personally think it's peaking right now. Really? I think it's peaking at the same time as Omicron.

Yeah. But so the core price where they pull out food, they pull out energy is up 5.5%. So no matter how you look at it, it's huge. It's noticeable to everybody. It's becoming a political problem. There's subcomponents in the CPI. This guy, Michael McDonough from Bloomberg reported that nine it's broad-based 90% of the subcomponents are above the feds target, which is 2%. That's a joke. Like everything's above 2% basically. Right. So I think, I think it's, I think it's peaking right now. And I have a lot of support in the data that says every October, there's a huge spike in imports as everybody gets ready for holidays. And then the consumer goes crazy in November and December, which leads to tons of demand.

And then every January, it's like an ice age. Like every January, February, everything cools off. People are done. And that gives these supply chains a chance historically to like catch their breath. To breathe a little bit. Rebuild inventory slowly. Now, that cycle that I just described

was on steroids this time because consumers have never had this much money and purchasing power. And stock portfolios have never been this high. And everybody's home price went up an average of 20%. So just like that wealth effect was pumping, the treasury was putting money into people's accounts. Like just everybody was ready to go nuts. I really think that between Omicron and the calendar turning over,

all this stuff is about to cool off really fast. And I'm hoping it does so in time for the Fed to not go crazy. Like with a 50 basis point hike or some shit. I don't think they're going to do it either. I just was booking my flight down to Miami for February. These guys got to be there. Awesome.

How was your flights to New York in terms of price? Was it normal, above normal, below normal? It was pretty normal. But the Miami flights? The Miami flights. Crazy. High? Crazy high.

Oh, really? Okay, because mine was $92. Mine was low. Mine was pretty high. Leaving Sacramento, though. You better send those bills to Matt and John. I'll tell you right now. Those Miami flights, you better invoice.

I don't think I've ever seen a flight so cheap. Yeah, mine was cheap. Mine was like – I've seen the cheapest flight I've seen from Fresno to Miami, you know, with the layover. It was like $196. That's not bad. Cross-country. Try that flight Christmas week. Yeah, for sure.

I just got back from Miami. I'm excited to go back again. If you think new yorkers are chill about uh covid yeah in miami it's it's almost like somebody telling you they have allergies what it's just it is just not it is just not a thing anywhere other than like where the retirement homes are so it's probably why everybody wants to be there i wanted to get into uh maybe there's a silver lining in inflation because one of the things driving this is that for the first time in our lives people in the bottom 10 or 20 percent of the income distribution have bargaining power like they're able to tell their employer no or no or no, I won't work those hours, or pay me more, or I'm leaving and starting my own shit.

That is a huge movement. And maybe as much as we all hate inflation, oh, my God, my bacon is so expensive. I don't feel like it's that black and white for people in the bottom who have never been so in demand. And there's a lot else going on. There's a lot of retirement, excess retirement. There's been no immigration into the country for three or four years since Trump. And since COVID obviously exacerbated that.

But how do we feel about these people finally being in a position where they can stand up for themselves and ask for more money? And we see it in the data. Like, isn't that kind of the silver lining of inflation? What do you think? I think, I mean, that's one of the good things happening right now, right? But I think the real silver lining is how these people are trying to make their money work for them, right? They're seeing things getting more expensive.

They're seeing their commute that probably costs $40 a tank, $60 in California now, right? So they're like, how am I going to stretch this dollar? So I see a lot of folks trying to get into the market. I mean, it's evident you just mentioned 25 million new investors entering the market. I think that trend 2Xs at least this year, right? You're going to find more people as things get more expensive, trying to figure out how they can leverage more of their money and have more buying power. So I think that continues. I think that's the biggest silver lining. Remember how long we were saying millennials are never going to invest?

They don't like stocks. They don't like owning things. They want to rent everything. That's over. Nobody's saying that anymore. Over. That didn't take long. At all.

Did 25 million people all figure out at once, oh, shit, the only people who can survive are equity investors? Like everybody figured this out. Just rushed there. Seriously. And they were led there by celebrities. Yes. It's very interesting how quick that seems to have become an epiphany. It's kind of a perfect storm.

It's a perfect storm. And maybe all these people would have eventually become investors, but maybe not for five or 10 more years. Well, I think having checks sent directly to the bank account helped. Yeah, for sure. It's always easier to play with somebody else's money, right? I think having those sports and wanting to bet on something helped too. Yo, those stocks went crazy last year. Bonkers.

DraftKings, MGM, stuff like that. And there were no games on of any sport for 10 months. And the stock market never stopped. And Bitcoin was 24 hours. Penn Gaming got as high as 142. It's now down to 45. Wow. Holy smokes.

By the way, I was looking at Peloton today. Market cap, 46 billion to 10 billion. Wow. Trounced. 36 billion gone. Crazy billion to $10 billion. Wow. Trounced. $36 billion gone. Crazy. Zoom, $160 billion to $48 billion. Lower.

Easy. Lower. I mean, today it's lower. Eventually. Yeah. All right. You guys were just out with some news, and I was really excited to have you come here and tell us about it.

I read all the press releases and stuff, But big picture is that you are starting or you have started the Onyx Advisor Network, which you call a new community platform focused on supporting underrepresented financial advisors. Tell me what you're doing there. Yeah. The Onyx Advisor Network is a platform that helps financial advisors, underrepresented is the word that we like to use, financial advisors start, scale, and sustain their businesses. For so long, I mean, you walk into conferences, you see one black man, one person of Latin descent in there, right? If that, and it's kind of, it's tough, right? So we've decided to start this network

to help people to see that they belong in the industry, there's space for them, right? They're seen, they're heard, they're known, and that they can scale and be successful in this space. I think for the longest time, the industry, there's space for them, right? They're seen, they're heard, they're known, and that they can scale and be successful in this space. I think for the longest time, the industry, like we've been screaming from the bottom to the top, trying to get help and trying to feel seen, right? But as I tell Emlyn all the time, you know, you can't expect your cries to be heard from the bottom. It just doesn't happen that way, right? So we've created with a bunch of partners, this network that hopefully will allow advisors to start scale, sustain, retain in the business and change the complexion of wealth, as Emlyn likes to say.

How are you doing that? Yes, we have seven or so partnerships. And basically when an advisor on boards, right, or is trying to be independent, they have to go through things that we've all gone through, regulatory stuff. So we've hired a compliance consultant to do that for our advisors. We have Altria as one of our custodians right now, right? And that is really unique because for the longest, you had to have, the number is $10 million, right? To even have a rep code at some of these custodians.

Yeah. And hire now. So if you're a brand new financial advisor bringing on your first clients and your first clients are giving you $50,000 each, you're just disenfranchised from the big system. And nobody's talking about it. Nobody's talking about that, right? So when you see that happen, you'll have underrepresented advisors that don't even do investment management because they're

so far away from the $25 to $10 million in AUM. So what are they doing? Hourly consulting? It's fee for service. And hoping they can one day manage assets. Hopefully one day I'll be there. Or maybe I'll be an IAR at a firm and I'll be able to get around it that way. So we have Altruist doing that. We have two financial planning softwares, RightCapital and MoneyGuyPro. Folks over at InvestNet.

Both very high quality. We have Wealthbox. That's going to be our primary CRM. We have Vanguard creating the Onyx portfolios, which will be SRI, ESG, and standard growth portfolios. What were those conversations? We love Vanguard. What were those conversations with Vanguard like? Did they get it immediately?

Were there a lot of hurdles to jump over? It wasn't even a question. It wasn't even a question. Has anybody ever approached them and asked them for something like that? Probably not. I mean, they mentioned like females in finance, but I think what we're doing is super unique, right? Because we're allowing advisors who otherwise wouldn't have the opportunity to even manage assets, right? It's amazing. Giving them away.

So the way that I like to frame it is that from the inception of your firm to the day-to-day operations of your firm, right? So regulatory, registration, ongoing. Like starting with what documents do I need? Starting with that all the way to like these are the portfolios that my clients are invested in. We're giving the advisor all of that. And then when you add on our supplemental partners, which are, you know, if you have a niche practice and you do tax, right, we have something for you to do that. Estate planning, all of that stuff. Now you're really building a tech stack to be dangerous, as I like to say, in the space.

a tech stack to be dangerous, as I like to say, in the space. But you could say to your client, coming aboard with me, even though I'm new, or I wouldn't say new, but even though I'm just getting started with my firm, like full disclosure, you're one of 20 clients, not 20,000 clients, but I have access to everything that all these other advisors have because I'm part of this network so I can help you with your taxes. Definitely leverage for the newer emerging advisor. But I think that for even the scale-up advisors, right, so that space before you hit your first 50 million, I think that those people are going to find that all the educational coaching stuff that we have going on, right,

the community there is going to give them some confidence to really remain in the industry, learn from their colleagues. I mean the best thing that I feel like Finswit has done for me is pair me up with the people that are ultra smart, right? Like he's doing that and that's how they're looking at this. Twitter is amazing for that. You would never be able to make connections like that with people that are doing the same thing you're doing, but geographically just miles away. Right. There's no other way that that would come about that I can think of. So it's really amazing for that.

Yeah, man. My word for that is, or my phrase is that it's collaboration over competition, right? So if we foster that environment like we have on Finswit in Onyx, right, everybody can win. Okay. So you're a young advisor. You start your firm. You join Onyx. Onyx is helping you from day one. So you're a young advisor. You start your firm. You join Onyx. Onyx is helping you from day one.

You're doing your disclosure docs. Everything. And now here's – so for me, when you guys were explaining it, I was thinking like think about how hard it is for a solo advisor to choose between eight different providers of every type of software. Like even if you know exactly what you're looking for, that's eight zoom meetings, five zoom, whatever. Like,

and then it's about, and then pricing decisions. And then is this one going to be interoperable with that one? Right. So you guys are doing this curation part where you're saying, don't worry about all the choices we chose for you. This is what's going to work. And we're giving you a great price on it because you're coming in through us.

For sure. Let's just stay on price, right? Like I started my firm at 24. I didn't have anything to really hang my hat on, right? So I was always looking for a bargain deal. By the way, it takes huge balls to be like at 24, like I'm an entrepreneur now, and I'm doing financial advice. Yeah. But, I mean, I felt like I lost everything.

So taking a stab at a business, if I lost the, like if I had to go back to the bank, it wouldn't have felt as bad as what I already lost. And that's for another conversation. But price alone, right? You see so often that these underrepresented advisors just can't pay the cost for technology and the cost to run a business, right? So if you're paying on average $400 a month for a piece of technology, for one piece of technology, stack that with six more, right?

You're over $20,000, $30,000. You're not spreading that out over enough clients. You know what I mean? It's profitable. Like you're losing money just to provide it. You're in the red for sure, right? So doing this, I think, creates longevity for a lot of practices. It creates inclusivity for a group of advisors who are otherwise disenfranchised and neglected in the industry.

I think it creates, again, a more diverse room. Can we talk about that term you guys are using, underrepresented? Yeah, for sure. I have a point of view of what I think you mean by that, but what do you mean when you say underrepresented? Underrepresented advisors are going to be advisors of color, women, LBGTQ+. That's an underrepresented advisor. That's the market that no one's going at.

What makes them underrepresented? Is it because it's only recently that larger firms are interested in even hiring them, let alone supporting their career growth. Absolutely. I mean, like if listening to our stories, you know, just talking about the challenge of even getting into the industry, right? The industry is not made welcoming to everyone. So when you get into this place and you're trying to get into this industry and you can't get in, there's so many barriers. What do you do? Like, what do you give up? Like I, so this is, you know, give you my story. Went to Morgan? No. Went to Morgan Stanley? Went to Merrill? No. Then I finally got in to Edward

Jones. This is after banking. I'd been in banking for, I don't know how many years already. I was already managing the bank. I already had some of my licenses and they just wouldn't let me in. And so, you know, being able to create that gateway for advisors like us, because we're saying underrepresented, this is underrepresented, right? Let me give you some numbers on that. I did some work on this. I did some work on this last year for a podcast episode I did about that underrepresentation. episode I did about that underrepresentation. And I actually did a whole series on this, but I wanted to see what the updated numbers were. And they've changed a lot, but not as much as they should have. In 2020, the number of black and Latino certified financial planners in the US grew substantially, 12.6% over the previous year, which was growth of 8%. So it's definitely heading in the right direction. But we're still talking about 1,493 total black certified

financial planners, and that's less than 2% of all CFPs. That's a f***ing joke. 10%. Right. So obviously, we could be playing catch up forever at the pace that we're we're going now so and then so you're also but you're also talking about not just uh black and latino but uh lgbtq why is it important for you guys to include them in the community that you're building i think it's because because want to create, we've been excluded before. How would we be able to build something and exclude a group of people from what we're building?

Understanding what that feels like, understanding that they need to have a place where they can grow, like almost like an incubator, if you will. So we wanted to be able to take care of all groups that were underrepresented and be able to show them how to build a practice right and so that's that's the thing like no one is even reaching out to that

group do you think that these people are going to graduate from onyx or are they going to stay in the family how do you think that's going to work challenge right yeah because a lot of the times you find that emerging advisors need a place to start right and once they figure out that um well i can pay for this now right for example they'll go do it on their own. But I think that the cost savings, the community, right, is so robust. And I think- Would you even be mad though, if there were like alumni who were success stories? You have your wings, you know what I mean? If we were a part of that success, I think we're doing a good job, right? Like you have a 10, 20 year career and you started at

Onyx, I don't think we would shake a stick at that. But I do think that there will be so much value and so much cost savings that it might make sense for advisors to stay. The other thing that you guys might end up doing is as the organization grows, you're going to need more people helping you lead it. For sure. And so some of the people that are starting with you in 2022, in 2025, might be recruiting young members and mentoring them. So there doesn't necessarily have to be an end to somebody's participation in the community. For sure. They could grow with you guys. And I think that community aspect is really the part that makes it sticky, right? We're talking about FinTwit. This community is one of the stickiest communities ever. And so if you do something like that and create that community aspect where advisors can come in and get fed and feed other advisors, right?

It's not only about just pouring into yourself. The start-up likes to call it push-pull. Like we have a responsibility, you know. They're pushing us forward and we have to pull them with us as we go. So when I think about that and I think about the community aspect, when we were talking about this earlier today, I went to a conference. This is in 2018. This is when this idea started. And we went to this conference, right?

And there was like 15 people of underrepresented advisors from all the walks of life that we were talking about. Like so few that you can literally count them. Count 15. Took a picture with them. I got the picture on my phone. Took a picture with them and never had seen anything like this. And we went to dinner after work. I mean, it was like we're just a group now.

It was all 15 of us walking around, had dinner. And it was in that group of people I was like, what if we had a community that was bigger than this of all advisors from all around the country working together? Because I had learned so much. Desarte and I learned so much from each other about our own personal practices when we were talking like, hey, what are you doing with this? Hey, what are you doing with that? How's this going? How's that going? If you multiply that, now we got the Invest Like the West group.

And we are able to sharpen each other. And what happens as the group expands? What happens as there's more people at it? What happens as there's more resources at it? What happens as there's, you know, so I think that that is going to be the part that makes people not want to leave do you think that wall street has uh since last summer has really gotten serious about um doing more not just a once a year thing but like really making it part of their business to diversify their, uh,

employee base to cater to a more diverse client base, because from my perspective, it looks serious. And I look at Goldman, uh, now taking on smaller accounts from young people. If you're going to do that, it ain't going to be all white kids.

Like the new face of wealth is every is, is everyone. So it's a more inclusive group of young, wealthy people. So you have no choice, basically. So I kind of feel like they're doing that, but maybe it's not fast enough. I threw this in the doc. CFP just appointed their first black American chair. Camilla Elliott.

Do you know her? I know of her. She's at 202 Grid with Keith Beverly and that whole team. So she is the first black American chair effective January 7th, serves as president and partner of small Washington-based ESG-focused RIA Grid 202. I mean, it's a pretty big deal that they're doing that, RIA Grid 202. I mean, it's a pretty big deal that they're doing that,

especially given that it's like 2% of their base, the CFP base. So I guess my question would be like, is it not fast enough? Is it not sincere enough? It's not intentional enough. It's not. It's not intentional enough. I think that when we look at diversity and inclusion in, like, traditionally, it was about filling quotas, right? It was like, we need to hire one diverse woman on our staff. All right, we got one.

We got one. Yay. Slaps, clinks, coffee mugs. Like that was the extent of the planning for diversity and inclusion. I hate that term, right? But I just think that we're getting intentional in a sense of giving people equity in their own firm. They're going to continue to grow their equity in their own firm, grow the autonomy of their practice, right? Serve the communities that they want to serve and not have to really think too much about the barriers of cost, the barriers of how to or finding a custodian. Like there's so many layers of challenges that these folks have to start. Yeah, you guys are a cheat sheet. You guys will put people like three years ahead of where they would be on their own.

So that's the goodness. So I don't want to say it's not happening fast enough. I think that the industry is really recognizing that this is a problem and it starts there. But after recognizing it's understanding, educating, and then implementing, right? So we're just in that first part. Like I recognize that this is an opportunity, right, that we have to address and this is a problem, but understanding education. I like that you're framing it

as an opportunity because, you know, again, the new generation of wealth, like, you're going to look like a clown if you have,

let's say, an advisor force and they don't represent the people that you're talking to. That's like, to me, representation is like, what is the demography of the country? And then where is the wealth being actually being created?

Yeah. And then who are you putting across the table from the new millionaires? Wealth doesn't look like it used to, right? No. That's right. Like, where I am in Northern California, like, there are young women that are crushing it. Yeah. Right.

Data scientists, some of my clients. Right. And they're getting paid in equity. In fact, they negotiate over 50 percent of their their compensation. Right. In equity. That turned into a lot at Tesla, at Google. Right.

At some of these startup companies that are getting acquired or merging. Right. One big acquisition I just had. I mean, she got like $14 million from it. So it's these things that you would never think that this person that might be wearing this hoodie and the beanie fold up looking cool, right? Might really be worth $20 million because he or she was a early employee at a startup, right? With a 32 cent strike price. Like these things matter. And I think if we turn the blind eye to that, the industry is doing itself a disservice.

Right. There goes that opportunity. It'll go to somebody else. I want to pivot and talk about ETFs versus mutual funds. And we use both at the firm. So we're not like celebrating one over the other. Mike, you threw this in the doc? Yeah, this is-

Throw this chart up. All right. Speaking of Vanguard. We're talking about Vanguard Yeah, this is- Throw this chart up. All right, so- Speaking of Vanguard. We're talking about Vanguard here. This is from Balchunas. ETFs account for just 24% of Vanguard's assets, but 92% of their net flows in 2021. So we're looking at a chart of Vanguard net flows

and in the most recent year, it was $355 billion. ETFs were $328 billion of that. I mean, the acceleration is upon us. So it might be an overstatement to say that mutual funds are dead, but they're going to die a long, slow death. It's going to take decades for the money to drip out, but it's coming. If 90% of the inflows are going into ETFs, and then you figure the average owner of a mutual fund is older

than the average owner of an ETF, then the net flows are definitely going negative eventually. I would love to see those numbers. Yeah, how long those numbers. You know what I mean? Right. If we can project out when will the mutual funds actually die. So when you guys build portfolios,

what is the primary consideration as far as like what funds you're going to use or what ETFs you're going to use? I mean, we want some domestic exposure. We want to also invest globally, right? I'm a huge proponent of ETFs. We don't use any mutual funds. Okay. I just think that they're just too expensive. I think the tax treatment is favorable for the investor with the ETFs, right?

And, yeah, we're just trying to globally diversify, politically diversify, and see where there's opportunity. But I'm a fan of this. I think this is speaking to the big change that we're having right in front of us. The way that I was taught to be an advisor isn't the way that advising is right now. The way that I was taught to invest, that's not necessarily how people are investing. Are we going to blow up anybody's spot today or what are we doing? We'll save that for the last five minutes. Come on, let's get them. Let's get them. But you know what I mean? It's different.

Yeah. What was the worst thing you were taught that just completely doesn't apply today? Not to put you on the spot. That I was taught that completely. Well, I was taught that a all equity portfolio is a right fit for everybody. Okay. Like you all, you should only hold stocks. It's cheaper over time. It appreciates way more, but you're not considering the person in that recommendation, right? Because everybody can't stomach necessarily the risk that we probably all can to know that stocks are volatile, right? So that was one of the first things that I was taught. Like we only do all equity,

individual stock portfolios. I was taught not to invest in your 401k and buy life insurance instead i've heard that that's a that's a that's a i've heard that yeah you were taught to do that for your clients oh yeah and for yourself yeah oh yeah did you do it though of course not he's too smart for that well i i was I was taught that you should always find something that somebody is asking for. Like in other words, I was taught like if the client calls up looking for something, just say yes and find it for them. So if a client is like, I read an article in Barron's and I really want to own a biotech fund. Like my job as a broker before we were calling ourselves financial advisors was go find them a biotech fund. Like my job as a broker before we were calling ourselves financial advisors was go find them a biotech fund and do, you know, do your best talk to an analyst, blah, blah, blah,

morning star. But like, that's what I was taught was the business. And then it's like, no, no, no. The business is telling the client what they need and then bringing them that not catering to their whims based on the last thing they read or the last person they talked to. But I spent years executing penny stocks for people. Whatever you ask me for, I'll do it. I'll find a way to get paid for it. I'll do it. That was part of the job.

You know what I mean? I mean, that was definitely one of the dumbest things that I was taught. But that was the business at the time. Speaking of dumb, did you guys read this article about, uh, the Binance guy? Yeah. What the fuck's going on here? How is this? Uh, let me read this.

In a region known for dizzying wealth, Zhao, 44 years old, fits right in. His net worth is 96 billion, according to the Bloomberg Billionaires Index. Excluding his crypto holdings. Excluding his holdings in crypto. That makes him richer than Zuckerberg and Google's founders, Larry Page and Sergey Brin. And it could be much larger if you actually factor in how much Bitcoin and whatever else he owns. But Binance has the thing called Binance Coin. And that went up 1300% last year. What is that?

It's not a stable coin, but it's what they use in between transactions. What? Binance coin? Yeah. I've seen BNB a lot on like Trust Wallet and stuff like that. So if you're using Binance and you sell Bitcoin and you're going to buy something else, the money goes into Binance coin in between. It's the way it was explained to me.

Is that, does that sound like it makes sense? I've had to buy, like when I want to buy an altcoin, for example, I have to convert it to BNB first. Yeah, that's what I'm trying to say. It's like an in-between coin is the best way that I can explain it. So this guy basically has a treasury of this BNB coin, and he's richer than anyone else that you've ever heard of.

And I just wanted to ask, when you read about stuff like this, don't you feel like everything has to crash immediately? How do you make this make sense? Yeah. It doesn't make any sense at all, right? Yeah. It seems almost like somebody found a pot of gold at the end of a rainbow, like in a children's story.

What do you think about this emily yeah same thing it's like you you hear this and then like it's just it's the first thing comes is i think for gazi i think like like you said it's fake it's like how like i i hear what he's saying but it's just doesn't make sense if you had a hundred billion in something called finance coin even if you invented it would you be sleeping well at night? Not at all. Okay. I mean, but it is the, it is, is it the biggest crypto brokerage in the world?

I think it's the biggest exchange and the most illegal. Well, they're not, they're not. Did you read the article? They're not even, like, he's not even allowed to live anywhere because in every jurisdiction, somebody is like going after, going after them for AML violations. Wow. Because think about, think about how easy it is to launder money through a crypto exchange and then the other ones are playing ball with regulators and this guy's just like nah and i don't even i don't think he has like a i don't even think there's a headquarters for the company i actually do all my money laundering through binance what about you guys it's pretty i mean it's pretty convenient um anyway his name is uh his name is they call him cz i've never heard of this person i i'm not really that informed about crypto but i just it strikes me that it's it would

be impossible for me to imagine five years from now if he's still like $100 billion. So either it's going to be a trillion or significantly less. All right, so what are you guys doing in the crypto realm? What's your strategy? Because if you're talking to young, rich people, they're probably asking you about it every day. Yeah, I think if you are going to serve millennials or younger professionals, this is a part of the conversation. So all in Binance. All in Binance, for sure. Just put it all on BNB. millennials or younger professionals, this is a part of the conversation. I mean, advisors-

So all in Binance. All in Binance, for sure. Just put it all on BNB. That's it. But I mean, people are saying that the rule of thumb should be 1% exposure. I feel uncomfortable recommending crypto right now without fully understanding the entire, you know, the thing, how it works. Like, I don't want to recommend anything that I don't fully understand. entire, you know, the thing that how it works. Like, I don't want to recommend anything that I don't fully understand. I have FOMO when it's with crypto. But I think that, you know, I'm okay with the amount that I've allocated towards it. Right. So when people ask, I just tell them what

I did. Right. Like, this is what I did. You tell them, go do it yourself. Go do it yourself. I mean, I'm not going to do it for you, but this is what I did. I have holdings in Bitcoin. I have holdings in ETH. Right. And that's where I feel comfortable. I've experimented goes to 100,000, will that be 2% magically overnight? Of course. Maybe three. Maybe even three at that point. They used to say gold should be 5%, and then gold fell 30%. I started hearing a lot of 1% gold, 2% gold.

Okay. What do you think is going to happen with the wealth business and financial advice and crypto? Like is this going to be the year where it becomes like a real thing that everyone's doing or not yet? I don't know if it will come all the way this year, but I think it's going to – it's definitely like I've seen it come up like in the last 12 months. By the way, Tyrone listens to the show. So you got to be as bullish as you need to be. Tyrone listens to the show, so you better be as bullish as you need to be. But I'm thinking about it in terms of can it work this soon, right?

And what I mean by that is clients still don't know that much about it. So when you're having them come in, and advisors are still learning about it. So shout out to OnRap Academy, right? You can go there and learn more and stuff like that. So I think we're still in the learning phase. People are still filling about it. So shout out to OnRap Academy, right? You can go there, learn more and stuff like that. So I think until, I think we're still in the learning phase. People are still filling it out. And I'm talking to the consumer on that side. And I'm talking to advisors because you're talking, you know, we can tell people what to, you know, tell them that they should do it, but we're not, I'm not managing it for them or anything like that at this point. So here would be what somebody would say back to you about not

recommending something that you don't fully understand. Most financial advisors could not have explained internet to their clients like in the late 90s, early 2000s, or how do mobile phones work, or even like how do biotech companies do drug discovery. I don't know that it's necessarily the advisor's role to become an expert in how all the investments work. But I feel like the advisor has to say, okay, there might be something here. Yes. And my client is wealthy enough to bear some risk. And just in case, like we can't have no exposure.

Yeah. So I think that's where I am mentally, or at least hopefully that will hold up in court. No, I mean, that's how I feel. We don't know if these are the next big software companies and they're just not classified as companies. But if any of what the crypto people are saying comes to pass and we have no exposure, is that the right answer? No. what the crypto people are saying comes to pass and we have no exposure is that the right answer no because because i don't think as an advisor you can't tell like if you know if you're you have to have some exposure right so one percent the best way to like like tip your hat to that is to say like this is what i'm doing right i mean you guys i read an article you guys invest in the same portfolios as your clients right yeah so who am I to be like, yep, this is a good idea, but I don't own any. Mike was the first money in

to the crypto index that we did with Jeremy and Tyrone's people. Exactly. So we were obviously- And I was second. We were very vocal about what we're doing,

but it was all inbound, right? If our clients saw it and they want to participate, now we have something that we're proud of. It's diversified. We can invest it for them on their behalf,

but we definitely don't want to be out there pounding the table on an investment that could fall 50% in two weeks. Nobody wants to be, well, you told me to do this. I don't even know what crypto is. Why do you recommend this? So this is really all inbound for us. Yeah, we're not recommending it to anyone. We let clients know it exists. And then we've had clients asking us for years.

And then we have clients that are like, I don't want to do that shit. And we're fine either way. But what we don't want is to send a client to a solution that's like a trap. Or that's potentially problematic. And in the crypto world, there's a lot of traps. Right? There's so many ways. There's a lot of traps.

It's a minefield. Yeah. So you can invest in something and it sounds like a good idea. And everybody's bullish when they get those notifications that says Bitcoin is at an all-time high, right? And then you get those calls. But I think having a safe vehicle, quote-unquote, to do so is a smart idea. Well, that's 100% right. I also was happy that this is going to keep clients away from doing something potentially dangerous on their own, right? Like, oh, I see.

What's meta? I see this Decentraland. I'm seeing these coins that are going up. Should I buy right? Like, oh, I see what's meta. I see this Decentraland. I'm seeing these coins that are going up. Should I buy them? Like, relax. You could invest in that through our index if you want to. Yeah. Come meet me in my virtual office in the Cayman Islands.

Web 3.0. Venmo is allowing, Venmo has like 400 million users or some insane number. They're allowing you to convert dollars into uh bitcoin and maybe also ethereum um right in the app which i don't think it's a brokerage transaction but you're definitely selling dollars to buy bitcoin or i guess the question is what happens when venmo starts allowing people to send each other crypto and that really takes off? Or you know how there's Venmo pay in store now?

What happens when you could just do a QR code and pay for something finally in crypto, which nobody has really figured out how to do that quickly? Like, is that the moment where clients are like, oh, now I really understand this? But will it be too late at that moment, right? Where is the price? like, oh, now I really understand this? But will it be too late at that moment? Right. Where is the price? Yeah. Like, will it be too late?

Probably. And how does how will these companies do it in a way that reduces the gas fees? Right. Because you can send crypto now. You can send it from your trust wallet back to Coinbase, from Coinbase back to your trust wallet. You could send $100 for $80. Yeah. But you're going to get ripped off for sending those transactions, right?

So I think the kick is- Yeah, I hate Visa and MasterCard, but I'm totally cool with 9% gas. But here's $179 for this transaction. So I think there's a lot of questions there. But I think almost agree when they start doing that. What price will Bitcoin be at when that happens? $100,000 per coin. So you're in Fresno. You're probably having much fewer conversations than Desarte has to in San Francisco.

Yeah. Well, since the pandemic, we got clients all over the country. But prior to that, no, there wasn't. So this is what I'm saying. Over the last 12 months, I've seen a lot more of those conversations, had a lot more of those conversations just because the clients were coming from different places. But in the Central Valley, man, we're way behind. It's just way behind. I think Central Valley and those more rural areas, they have apps like Acre Invest and stuff like that. So there's also things that clients are asking there that I might not know about, right?

And I've heard of like Vino Vest, Anthony Zhang, they're investing in wine. A lot of people in Sonoma are asking about that. Like, how can I get exposure to wine now? So I think every reason has its thing, right, that you can kind of talk about. I wanted to ask you guys about this thing, just this abundance concept. It looks like infrastructure is like stalling in Congress or we don't know what shape that will ultimately take or whatever. And it just feels like people are waiting in line everywhere you look.

Mostly it's to get tested for COVID, but people are waiting for things to be delivered to the ports. It just feels like there's scarcity everywhere. Derek Thompson at The Atlantic wrote this thing kind of explaining that a lot of it is intentional. Like we have the fewest physicians per capita of any, anywhere in the West. We're making it really hard to become a doctor. I never really thought about that until I read him. It

sounds so obvious. Like residency for doctors sounds awful. It's like they're trying to disincentivize people from becoming medical doctors. What is going on here? I don't quite understand what the reason is. We also don't let the immigrants that were medically trained from other countries come here and just start practicing. They do in Europe. They're desperate for doctors. So if you're a dentist in Poland and you show up in England, you could start practicing. And we're not doing anything like that. So I just wanted to read this one part because I thought it was really, We're not doing anything like that. So I just wanted to read this one part because I thought it was really – basically he wants to start promoting this abundance agenda.

And it would be pretty popular with pretty much everyone, whether you're right, left, libertarian, because there's something for everyone that's complaining about right now. So he's saying like – hang on. I lost it. But I guess the main point is like, what do you think the economy looks like now that all this money is out there in the system and being spent? And now that we may not get like a full-blown infrastructure bill, but people are just spending and demand eventually has to arrive. We can't have lines around the corner forever. We can't have people waiting six months for things forever. So what do you think that's going to look like in the next couple of years, specifically for the next generation of wealthy people?

I don't know, man. I live in California and there's so many homeless people around right now, right? It almost feels like even though there's so much money circling around and moving at incredibly fast paces, it seems like it's just widening the gap to some degree, right? So I can't say if things get- It was scarcity of housing, and that's also a policy choice. Things get better or worse, but when you walk down San Francisco, I mean, you're going to pass by at least like 50 homeless people on your way to Union Square. But it's not only there.

It's all in California. It's all up and down. It's a real problem. You guys were around Madison Square Garden last night, so we have our same area. So that also seems like a choice. Energy, we have no nuclear plants. We don't really have that much clean energy or anything like that. And the best performing stocks in the market last year were oil stocks.

It's almost like we're taking a step backwards. Yeah. So I guess the question then would be like, what are you doing as an investor? Are you involved with clean energy stocks or ESG portfolios or is that stuff not that important? It's funny that you mentioned ESG portfolios because I think that that's a trend that's happening right now. But when I look at and I break those portfolios down, a lot of those are really growth leaning, right? So it's almost like you can invest in the individual names alone, Right. And have exposure to those best performers. As I was reading this article, I was looking at the housing section and I just bought a house right in September. And in two months, two and a half months't even know if like it's making it almost unreasonable

like how are we supposed to achieve this american dream i don't know where to lend my dollars and resources in terms of an investment strategy because everything's so crazy right now yeah anything you're gonna anything you're gonna buy is like pretty much at its at its peak price a whole generation yeah you just i don't think we we really have much of a choice there um are you bullish on ev or any of that stuff no i don't own any of those stocks i missed the whole run in tesla i never it's not that i didn't think that we would have electric vehicles i did i just didn't think they would be the company to do it and i was totally wrong because we're gonna because everyone's going to

do electric vehicles, but they seem like they're going to stay the leader. Ford's at a multi-year high. Today, 52-week high. Is that because of the F-150? Yeah. I'm in GM, which is going up because of electric vehicles. But, I mean, Tesla, I feel like, was one of the biggest opportunities in my career that I just

never believed in it. That's a one-time thing. And I say that all the time, and then it goes back down to 800 and flies back up to, like, 1,500. I think that I just never believe in it. That's a one-time thing. And I say that all the time, and then it goes back down to $800 and flies back up to like $1,500. I think that somebody just released that that's the next price target. Rivian, I think, I read an article about Rivian who's supposed to be their competitor, right? New, hot, flashy. And I think they only produced 1,200 cars last year. So when you think about the gap, the catch--up gap the fall off is steep like tesla and

then everybody else in terms of production hype then you got elon so rivian is going to do a truck that really is going to give the f-150 a run for its money if they can make enough of them but it's super expensive is it called the cyber truck no it's sick though i don't think so i personally don't think they're going to make a lot of them i just don't i don't think they're gonna it's sick though. I don't think – so I personally don't think they're going to make a lot of them. I just don't – I don't think they're going to – it like takes a long time. It took Tesla a long time and I don't think the physics of assembling cars at scale has changed much in the last few years. Even if the battery has evolved, I still think you need people and facilities and a lot of money. So I'm not – like I'm not in that.

Lucid is really going to be the Tesla competitor with the cars. It looks sleek. The car looks sick. Yeah, it looks sleek. I would buy one before I would buy the stock, I think. But again, you're talking to the guy that owned no Tesla until it was added to the S&P 500.

So don't go by me with that. We're going to do favorites, and then we'll get out of here, and you guys will go get some steaks. Michael, you want to start us off? What do you got this week? Well, I'm like 30 years late to this, but Lethal Weapon 2. Holy shit. Oh, my God.

What a movie. Big Mel Gibson fan now. Big Mel Gibson fan now. Danny Glover fan. Big Mel Gibson fan. All right. Desarte, what's Fiber Fueled? Fiber Fueled. That's a book that I just picked up.

It's about eating to be fueled to pretty much chase greatness, as I like to say. You see my armor to greatness sweet every morning, right? So I'm trying to experiment with it. If I eat in a certain way will i be more productive will i be stronger faster better so literally fiber or is there more to it metamucil just take a bunch of that right whip it around and take a big swing that's the book it's a one page book no but um it's about plant-based foods some meats right and if you eat like that you'll be way more productive so i'm going to try it out and see if I like it.

The other thing was that article that we discussed. Wait, let me come back to the fiber thing. What's your, so it's not just about, so a lot of people, a lot of people would just say like,

all right, I get it, but I can't do it or I can't do it for long. That's how I feel. And I've always been one, like I play football. I can do it for one meal. I can eat a really healthy meal. One been one person. I play football. I can do it for one meal. I can eat a really healthy meal.

One meal? Yeah. I play football. So, you know, part of being an athlete is making sure that you maintain your body, right? And I would try these different types of way of eating. But when I got to my goal, I would just chill out. Like, look good, feel good, back to eating whatever I wanted to eat, right? Now I'm thinking about if I did this, it's kind of like compounding on your investments, right?

Like, if I do this for a long enough period of time, what happens? I've never tested that. So Fiber Fuel is kind of the book that I'm reading right now to see if I can do it. I hate telling you this, but you have your first kid, your first baby being born in May. At a certain point, you're just going to eat whatever you have time for. Like whatever you could grab off the counter because things get hectic now. I'm sure. Emlyn tells me all the time.

It's going to be a little bit harder, but I feel like you have the discipline. You should be fine. Let's pray. Emlyn, did you bring any favorites today? Anything we should read, watch, listen to? Tipping point. Okay. Tipping point.

I'm a big Malcolm Gladwell fan, and I love all his stuff. Every time I read one of his books, I always get something from it. And this one was an older one, but sometimes I'll revisit them. And that's what I'm reading right now. I just absolutely love the book and the subtitle, How Little Things Can Make a Big Difference. And when I look at my practice and what I'm doing in my business and even what we're doing in Onyx, it's these little things that we're trying to work on right now that are going to make the biggest difference for the impact we're trying to make. You don't even know which thing it's going to be. Like you could identify it after like, Oh, remember when we did that,

that made a big difference. You feel that way? Like how we built the business. Of course we do. You do like a million things and then one of them turns out to have been really important. What's the secret to success. Get it. Come on with that nonsense. A few lucky breaks. Seriously. And I think like it's, you know, the trial and error.

Those little things. Like, and next thing you know, it's like, oh, wow, we need to do more of that. Yes. More of what works, less of what doesn't. Exactly. All right. So, Emlyn, you're a West Coast guy, but you're rocking a Yankee hat. I got to hear the story behind that.

Yeah. We talked about this. The Sartre always gives me a hard time about it. But my name is Emlyn Mattingly. Oh, that's it then. There you go. Upset. Born in the 80ly. Oh, that's it then. There you go. Born in the 80s, watched the Yankees in the 90s, only person in sports to have my last name.

You two are the most famous Mattinglys, I think. Because I can't think of another one. Fun fact, there was one other kicker that played for LSU in early, I want to say late 90s, early 2000s. Not famous. No, not famous at all. But he's a kicker. That's the only other person I've seen that had my last name.

Who's your favorite Yankee of the last 10, 15 years? Who's your guy? Jeter. Come on. Jeter. Jeter or Revere. Or Revere. Because Revere was just like, there's nothing like Mariano.

So we're going down to Miami for the exchange conference. The last conference I went to in Miami was two weeks before the pandemic. Wow. It was inside ETFs and they had Jeter there. Oh, man. And I got to meet him. I forget what ETF company like brought him in and sponsored him coming.

Definitely not Vanguard. Probably not Vanguard. Right. Probably not Vanguard. But so they like got all the VIPs like notified, like, okay, if you want to meet you. VIP is like if you went there to speak, basically. So like 40 of us that like they were like, okay, he's going to be in this suite. Don't tell anybody.

Line up in the hallway. Wait till it's your turn. The number one thing is Derek Jeter doesn't take pictures with fucking ETF nerds. So do not pose. Don't hold your phone up. So everyone was cool. I was first in line. Not because I'm like a crazed person,

but I just like made it a point to get there early. And then the people behind, as I was talking to him about God knows what, the people behind me were like visibly getting agitated, which made me like, this is my personality personality made me want to stay even longer and then finally there

was like a handler there that's like okay derek was so glad to meet you and walked me out like a child but i was hyped for that i was hyped for that uh my favorite this week you guys listening to naz record yes yes i think this is I think this is better than King's Disease 2. It's so good. It's so good. He's rapping like he's 27. It's so good. Were you surprised that A$AP Rocky was trying to sound like a 90s rapper?

You okay with that? He had to pay homage. Yeah. I respect that. He switched up the flow to make himself fit in the song. I was kind of okay with it. Yeah. I listened to it in the gym. I listened to it all the way through, in the song. I was kind of okay with it. Yeah. I listened to it in the gym.

I listened to it all the way through, no skips. I took Umbridge with it. Yeah. Michael hasn't gotten there yet. He's still on Lethal Weapon 3. It'll take him another 30 years to get to Nas. There's a lot of business stuff in some of those tracks. Yeah, for sure.

Meet Joe Black has a lot of investing stuff in there. Man. And business stuff. Talks about the marathon being patient. Meet Joe Black with Brad lot of investing stuff in there. Man. And business stuff. Talks about the marathon being patient. Meet Joe Black with Brad Pitt? That's the name of the song, but yeah, it's also a movie. Also a movie from 30 years ago. You'll love it.

You'll absolutely love it. All right, we're going to let everybody get out of here, but before we do, I want everybody to know the websites they can go to to learn more about Onyx. So where would you – we have a lot of financial advisors who listen. Where would you send them to? Well, first of all, thank you guys so much for the platform

and the opportunity to speak. Our pleasure. We love having you come in and explain it to us. Awesome, awesome, awesome. You can find Onyx and everything about it at www.onyxadvisornetwork.com. onyxadvisornetwork.com. Yep.

Okay. And what do people do when they get there? Just fill out the form and- Fill out the form that'll ping us. We have a community manager that'll reach out to give you more information about what we'll be doing. Okay. Very excited. Do you have a target, like a goal, or how many advisors do you think you'll sign this year?

We set the bar really low, really. Let's get 100 advisors. We already have 250 advisors ready to do this thing. So I wouldn't be surprised if we end the year at 500 advisors. Okay. Your partners will be very excited. For sure. If it overperforms to that extent, these other firms that you brought in to help you, they're going to be very excited.

Yeah, we're looking forward to it. All right, that's great. We're going to see you at Exchange Conference. Absolutely. Yes? Absolutely. Emlin, what's the name of your podcast? Minority Mindset?

Minority Money. Minority Money. Okay. And is yours now called Pay Me In Equity? Pay Me In Equity, baby. Okay, so it's not Young Money anymore, butity Money. Minority Money. Okay. And is yours now called Pay Me In Equity? Pay Me In Equity, baby. Okay. So it's not Young Money anymore, but it is. Not Young Money.

We grew up a little bit. Okay. So now, all right, got it. I mean, you got a kid now. Yeah. You got a kid. All right. So Pay Me In Equity is Desarte's podcast, and Minority Money is Emlyn's podcast.

And you guys do a great job. And I was on Desartes. I hope I get an invite to yours. Absolutely. All right. I'd love to be there. And Michael, what's your podcast? Our Thing.

No, it's not. Definitely not. Adam, New Animal Spirits drops Monday and Wednesday this coming week. And don't forget, go to YouTube.com slash the compound rwm if you want to watch clips of michael myself to sarte and emlin chopping it up today live at the compound thank you guys so much for listening really appreciate it we will talk to you next week take us out well done this is the part where i freestyle i'll keep that that. I was like, let's go. I won't do that.

I won't do that. you