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Nov 16 Financial News: Retail Sales Up, Rent on Houses up 10.2%, #1 Priciest Zip Code, Peloton $1B

Video Closed Captions:

one rental at a time it is tuesday

november 16th

how you doing i hope you’re having a

wonderful day couple quick uh notes

before we get started today actually

only one i would love your

feedback recently i started spending

some money

on my youtube channel yes i am pretty

cheap

but i’m now having somebody create

thumbnails uh for

my videos

and i would love your feedback my

current instructions to the group is hey

take the title take the videos and you

know create

a thumbnail you know use the colors that

are one rental at a time

so i would love to get your feedback

i’ve stopped

putting pictures you know pictures of

who the guests are in there but i’m not

sure what what you all like

so let me know what you think i like

them but again

my opinion really doesn’t matter so

love to understand what is going on with

the channel what you guys think so uh

i’ll let you know that renee the hat

thank you very much one rental at a time

you can get it below or on my website

one rental at a time

i do have a couple of shirts there’s a

shirt that talks about inflation that i

just created i think is really uh really

popular too i think it matches the hat

so go take a look enjoy it nice

christmas present to yourself

so as we get started with the day let’s

talk about retail sales retail sales

were the big number for the week they

were reported this morning

and they came out above expectations

i want to be very clear about something

i saw

or i shared i think it was sunday

morning my economics 101 it was that

video i asked you to get a piece of

paper for

retail sales are going to be up in q3

they already were they’re going to be up

in q4

folks

they gave us and i have the notes 5

trillion dollars were sent out

to individuals

1.6 trillion of that or 30

is still

sitting

in savings accounts

then remember what else are they telling

us they’re telling us shop early

shortages don’t do that you know do it

now do it now are we really surprised

that the average consumer

uh is out shopping early

i don’t i

this is this is economics 101 supply and

demand

demand is the want and the ability to

buy

we have it in spades the consumer is

liquid

and supply is limited

retailers will not discount there will

be has anybody noticed

there have been

no

blockbuster black friday advertising if

you can remember all the way back to

2018

2019

tv commercials come here 5 am do this do

that

all these retailers are saving that

marketing money

it’s going to make their earnings per

share look better folks

this is so predictable it is not even

funny

but yet the media is going to be oh my

god the consumer is spending yeah no

kidding they’re spending you gave them 5

trillion dollars and now you’re telling

them by now or it’s not going to be

there

just wait q1 maybe q2 probably q2

um

we’re going to see the reverse of this

that 1.6 trillion dollars half of it

will be gone

people have pre-bought not going to be

there and oh by the way the supply chain

will eventually unlock in all of those

retour stores that you know are triple

buying

double ordering

it is going to be a problem

we are going to head into a slowing

economy and this is not good

so retail sales were up 1.7

prices up no discounting shop now before

everything’s gone this

it is so frustrating that folks don’t

see this coming

next up walmart we’ll talk about a

couple of earnings

uh walmart uh beat top and bottom

walmart is one of those companies if you

are looking to get in the game and start

tracking the consumer like i have been

done doing for 30 years walmart is going

to become one of your anchors

walmart is huge

walmart is that environment where people

trade down to

or trade up from based on how the

economy is doing is it re recessionary

or is it expansion walmart is a huge

early indicator

it just is not right or wrong it just is

so again revenue grew four percent

people are buying

early christmas gifts folks

if you don’t understand what is going on

we’re not paying attention

there are no sales prices are up

very low inventory all this money

sitting on the sidelines we all have a

capacity to pay we all love our kids we

all love our loved ones we’re going to

buy it early so we don’t miss out and

have an unhappy christmas

and this is going to have an unfortunate

hangover next year when all the money’s

gone and we’re like what’s going on why

is inflation so high it’s it’s coming

home depot beat top and bottom

again kind of what you would expect

although there are very interesting

things going on at home depot home depot

reports more granular numbers than

walmart for example

transactions

fell at home depot

by 5.5 percent that means there are less

people going through the lines in home

depot

i am thinking

flipping and all of this stuff is really

slowing down

however they were up and beat earnings

because the

average

receipt

the average receipt that you go through

line was up twelve point nine percent or

up a total of eighty uh up to eighty two

dollars and thirty cents

so again less transactions but the

transactions are higher priced

allah inflation allah no discounting

it’s

this is so predictable it’s not even

funny then we go on to peloton

peloton is in a world of hurt peloton

drastically missed expectations

peloton has built a company

that is frankly

sized

for a certain level and now their level

is lower folks

it is not an exaggeration to say that

evergrande yes that property developer

in china with 300 billion in debt and

peloton are suffering from the same

thing

cash flow statement folks i tell you

everybody talks income statement balance

sheet but you want to see a company

that’s struggling look at their cash

flow statement

peloton has built a business and a set

of expenses

that needs that top line number to be

massive

peloton is raising a billion dollars in

hope that they can limp through to the

other side i suspect that peloton will

announce layoffs sometime next year

they had their time in the sun and

unfortunately they built a bloated

business

that didn’t understand that the pandemic

or health crisis

really was a once-in-a-lifetime event

can you imagine

i don’t know 95 percent of your

competition which is gyms

closing

and closing for a year

that is going to be the best time ever

for peloton

and they didn’t realize it now their

cash flow statement is bloated with head

count bloated with marketing costs

bloated with retail space

and they’re going to slowly die but

thankfully they have the ability to

raise a billion dollars in new stock so

at some point they’re going to see that

their cash is bleeding again and then

they will right-size the company it will

be painful

uh what else we got oh rent for single

family homes

single family homes again one rental at

a time

all of these things i keep preaching

it is going to be the asset of choice

wall street is coming here because they

can get above six percent return

rents are up 10.2 percent single-family

homes specific that is a national number

miami

i hope all of you have rentals in miami

i really do

the reason is is miami’s rent is up

25.7 percent

if you were renting for a thousand bucks

it’s now 12.50 if you were renting for

two grand it’s now 2500

and all of that increase when you have

30-year cheap debt falls to the bottom

line

folks i can’t scream this enough if you

want to change your life going forward

you need to use the gift

of 30-year cheap money

you need to get a single-family rental

home that cash flows day one

and then you need to hold on

the people that won the 1970s were the

people that bought in 70 and 71

it’s just that simple it is just that

simple

uh again uh

uh home builders homebuilders numbers

came out this morning they are feeling

confident they are feeling confident

even

uh when they um oh my goodness one of

our viewers just had a stroke three

weeks ago jeffrey feel better man i i

didn’t know i’m sorry

feel better jeffrey um we miss you out

here

uh man sorry buddy uh where was i going

oh yeah home builders

home builders feeling confident and that

is in the face of supply chain issues

uh lack of

employees

and lack of land

can you imagine being confident when you

have no shelter no food no water

i mean that’s essentially what

that’s just because there is no

competition

from previously owned home

higher prices

it is just crazy oh i had some more

numbers on rent sorry i

i wrote so much stuff this morning miami

again was up 25.7

phoenix up 19.8 percent

and then las vegas this does not make

sense to me but hey doesn’t make sense

to me las vegas rent was up

15.9 percent

man i got to get brian lebo back on the

show see what’s going on in vegas this

is crazy

ibm ceo out saying inflation fears will

will cause some chaos uh i think that is

an understatement and a half

uh and it’s interesting that they go to

the ceo of ibm for that quote it’s just

weird

do you know what the most priciest zip

code is in the america in america

this is this is crazy so this zip code

is about

10 miles

from where i’m sitting right now

it is the zip code of atherton

specifically

94027

if you want to have fun on realtor.com

or zillow go to 94027

and see some stupid price houses

the median home price median

median

7.5 million

that is the land of stupid

that is crazy

there was a report again a viewer of

this channel shared with me thank you

thank you thank you

the 100 priciest zip codes

49 of them no sorry i lied 47 of them 47

of them

47 of them were are in 45 minutes of

where i’m sitting today when i talk

about the bay area being stupid folks

that is an example 47 of the 100

priciest zip codes are within 45 minutes

of where i sit

live where you want

invest where the numbers make sense

thank goodness for fresno california

and then the final thing something that

is really annoying to me

uh is the concept about the wealthy and

them paying their fair share so i have a

question for you right now and i mean

this this is a this is a real question

who should we be more annoyed with upset

with

an entrepreneur who creates multiple

businesses provides technology that we

all like and need

that who is worth 300 billion dollars

give or take

or

a career politician

who comes from nothing and is now worth

nearly 200 million dollars

i know which one pisses me off it’s the

one that has never created a company

that is using their power and access to

front run or insider trade

and is now worth 200 million dollars

and if you don’t know who i’m speaking

of you can go look up nancy pelosi’s net

worth

and see just how upsetting it is

politicians need term limits

we can’t have

career politicians use the system and

access

to create multiple

nine figure networks no wonder they

never leave

no wonder self-interest through and

through

so again if you want to hate on someone

who is rich

i choose to hate on politicians

versus an entrepreneur who invents

creates risks their own capital

in wins good for him

uh elon musk bet on

red number two

over and over and over

yes and again this is not red or green

uh paul said don’t forget joe manchin i

think

i um

yeah same deal term limits this is all

this is not okay we the american people

need to hold our politicians to term

limits i don’t know what it is whether

it’s two maybe three terms

but get out go get a job geez

craziness so that’s what i got for you

today this is going to be a fun day we

talked to the lumberjack i think at

eight in omar at nine

and again let me know what you think of

the thumbnails i really like them uh

maybe some of you don’t maybe you’d

rather see our smiling faces

let me know i would love to hear from

i’m i’m spending thousands of dollars to

get these things created so i want to

make sure you like them take care

everyone and jeffrey take care of

yourself and jeffrey just for you i’m

holding happy in my lap

he was asleep but this one’s for you

buddy

ah

all right everybody take care

 

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