Emerging Markets Under Pressure: How Oil, the Dollar, and Iran Are Hammering Developing Economies

This is Invest Talk. From KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein. Good afternoon fellow investors and welcome back to Invest Talk. This is our Monday, October 5th, 2026 edition of Invest Talk. A lot to discuss is we embark on a new week, excited for this hour with you to answer your finance and investment questions and help you take your next step in your financial journey. There's a lot of pitfalls that you must avoid, but then there are also hundreds of thousands of opportunities, good opportunities, that you must learn to identify, balance the risks and reward, figure out what is right for you. And that's what we are here to help with. So I encourage you to give me a call. 8899 chart is the number to get through anytime. I'm Justin Klein and I'm doing this for over 25 years now. So I've seen it a lot and I'm ready to help you take your next step. So give a call. 8899 chart is the number and a quick heads up. The date is creeping closer just under three weeks away. Be sure to mark your calendars for October 24th. It's a Saturday. You're invited to join the KPP team and guest experts far in person, Invest Talk retirement summit special event is free of charge, but seating is limited. So you must pre-register now at investtalk.com because I think we are running relatively low. I know we're over half full. So the I think the spot left are numbering little over a dozen. So if you're going to come, make sure you reach out and pre-register now in just a bit. I'm going to talk about today's market performance and run down the show topics for the hour. But as usual, we'll tackle this first color question now. I'm invested heavily in VTI, which is a Vanguard ETF. And most of my time in portfolio along with our savings are in VTI because I'm a true believer that the market does go up over 20 years at about eight percent per year. Is that a good strategy or should I be looking at other things? Thanks. Well, you're correct. That over time, the market goes up. That's just inflation. That's how it works. Price and economy go up. So earnings go up. Money goes into the market, especially because 401Ks. And that's one of the reasons why indexing has done so well. Question will be, when does that reverse? You go into recession. People start to take money out of their 401Ks. Maybe boomers take money out of their index funds, etc. And does that reflexivity of these index funds continue to do well, start to reverse. And I think that is what will happen. It's just a matter of what is the timing of that. And so I think this is a great opportunity to start diversity portfolio VTI as 36% in tech. Financials are 12. That's the next largest sector. Then you have health care 10, industrials 9, consumer cycle 9, communication services about 9. So you're kind of huddling into one sector and then four satellite sectors and the rest are sub 4% of exposure. So you don't get great diversity. Does that mean you go and sell all of your VTI or the S&P funds are going to look very similar as well or your S&P. No, not necessarily. But this is a great time. You've seen that since the beginning of last year where foreign markets have started to outperform the smaller caps and mid caps are starting to outperform, especially as. No, over the past couple months. No, but over the medium term now of last couple of years, they have been outperforming. Why? Because these hyperscalers are spending so much money on AI and AI infrastructure that the beneficiaries in most cases are going to be the mid and small cat companies that provide either the chips or the industrial infrastructure such as such as electric grid products. And then you also have your material companies that provide copper for these in products as well. So there's a lot of money flowing from the hyperscalers cash flow flowing from the hyperscalers to these mid and small cap names. So I think this is the perfect time to start broadening out diversifying your portfolio. It's okay to say, yes, over time, the market goes up. Yes, that's true. But you are very, very pigeonholed into large cap US equities when you're just buying VTI. I know it sounds like it's broad because it's a total stock market, but it's a total US stock market and global equity markets are much, much bigger. So I would get foreign exposure. I would look small and mid cap exposure. I would look for hard asset exposure for diversity because what you're getting there is broad, a broad hedge against inflation as opposed to a very narrow potentially flawed, very flawed exposure with just VTI. So with a great show on Friday, we looked into this story. Wall Street is back in charge. What initial money flowing into the markets means for retail investors. We also answered the questions on Halo, which is Halo, Zime, therapeutics. We also, if you happen to miss it, go check it out. You can get every show is to follow Invest Talk wherever you get your podcast and a lot of ground to cover over the next 45 minutes or so. As usual, time for many will get to all of it. But our main focus point is going to be on emerging markets, being under pressure, high ill prices, the dollar in Iran, how they're all hammering, developing economies, but it's not even. Yes, it's. Hamming some developing economies, but it's also helping others. So we're going to parse the winners and the losers from within the emerging market space with the current economic backdrop. So let's take a look at that. We have other topics on the docket as well. Well, the jobs number on Friday, digging into the details. What is it really telling us? It was one data point, but is it the start of a broader trend or as a continuation of a broader trend? We'll look at that. And then lastly, we'll look at global debt, mainly actually US debt. Everyone talks about what's going on with interest rates in the bottom market. What is it telling us? Is it telling us we have too much debt? How much debt can the US handle? We'll dig into that. We also have voice main questions. One is on safe investments. I think it's going to be interesting. Haven't heard that call yet, but just by the title of it. Then Abercrommie and Fitch and F is the symbol. And of course, there are questions that came into the comment section on the Invest Talk YouTube channel. Now we're going to head to a quick break. Please remember you can call any time and leave your question on the Invest Talk voice bank. But if you're listening via our live stream or on Amtell 20 in the Bay Area, you can call right now at 888 99 chart. Next comment on today's market activity. It's official. Total lifetime downloads for the Invest Talk podcast are now more than 63 million. Justin Klein is here now taking your calls live. Invest Talk 888 99 chart. It is 99 chart. It is 992427 days. I get to ask your question on today's show and just heads up. Luke and I will be out starting on Wednesday. We are going to a wedding actually same wedding. So if you want to get a answer or a question to us, you're going to have to do that either today or tomorrow. So I encourage you to pick up the phone now. Let's move on to today's market. You have the Dow up a little bit. SMP up about 2/3 of 1% NASDAQ up a little over 1% Russell 2000 up about a half a percent. Really had the big winners were names like Nvidia 2% Broadcom up to you had Tesla up to Microsoft 1 1/2 Google. So it continues to be the mega caps that are holding up this market overall. It was kind of a muted day though. If you go look at a heat map a lot of gray will gray means and not up much not down much. Just kind of a flatish day for a lot of names. The big movers the downside until down 2.6 mark down 3.3 sales force down 2%. Those were kind of the big winners across the board. Yeah, sorry big losers. But overall just kind of a muted day. You continue to see issues in the Middle East. The Iranian parliament said that the straight up for Moose will remain close. At least the speaker of the parliament says there remain close until 7 conditions of the June MOU are satisfied with the United States. So that continues to be just kind of a situation that's been floating. I said this month ago. I remember there was somebody on. I think it was a YouTube comment. That's when I was being partisan that that it was some political thing that I why I said this is going to drag on. No, it was so obvious months and months ago that I said it was going to drag on until the midterms. Well, guess what? Midterms are right around the corner. What are we under four weeks until the midterms or four weeks tomorrow? I want to say. So, yeah, this is going to continue to drag on. It looks like the good news is Saudi Arabia's East West pipeline looks to be operational once again return to 80% of its 7 million barrel capacity. And we'll be there by late this week that they said so the overall that was a bit of a positive But I don't think the straighter her moves is is going anywhere. I think it's still going to be shut for a while The goal finished down point one silver up 1.5 Bitcoin up 1.7 WTI was down 1.8 and choppy trading So I continue to see that I continue to expect that for some time And we're going to choppy period, but I've said that but in in to the midterms. I think you get general upside, but a lot of choppiness Now from time to time we've seen questions via web form from besttalk.com Here's one that came in earlier. I'll from Santa Rosa says I'm a long time listener and long time investor your podcast is one is the one show that I will never miss a generally By the digital bonds my portfolio and hold them for the duration. You have recommended short duration bonds in this rising Re-environment is very rate that you would start buying longer duration bonds Like her example would be buying an a rated call protected investment grade bond for six and a half for 10 years Your thoughts would be appreciated. I do think they're you're getting to a point where Extending duration a little bit might not be a bad thing because While we're in a rising rate environment likely be that way for The next few decades. That's how this works go look at cycles is usually a 30 year up 30 year down This last cycle extended a little farther from the early 80s until the bond in 2020 Yeah, so that was Almost 40 years But the main point here is that when when it does start to go up. It's it's decades Now just like For through the 80s 90s and nots and in 2010s Intrace fell there were years where it went up. So just like Like last year, I think we're interested in choice fall. Yes last year. I think they did The you will have years you will have quarters when straights will fall So when you see rates move up and bond prices fall that is an indication to say, okay? Yes Confirms my bias or your bias that intrace will rise But over the short to medium term, maybe you want to lock in a little bit higher rates So when I got 10 years like this question insinuated no, I don't think I would ever buy a 10 year plus bond Probably for you know, probably not until I'm retired Honestly, so I'm going to be doing this for another 20 30 years at least So either you remain shortish term, but you go on average. I think our average right now is three years Indoration do you push that to four? Maybe go five? Sure, but you go to 10 no now you're getting crazy you're taking crazy bills again, okay? It's it's it's a mild change Okay, it's a more of a tactical short term change move from three to four years or four to five years add a year in duration But don't go out all the way to 10 that's still too long They were heading to a break Don't want that stop you I'm here Smiling show for the week. So if you're going to ask me a question. You're going to have to do that right now I'm ready for it. Give me a call now at eight eight ninety nine chart Justin Klein is here and ready to tackle your questions Curious if you think it'd be better for me to let it go and spend money elsewhere Well, first off never take one man's opinion as gospel including my own Invest talk is ready 24/7 when you give a recommendation on your show for a buy-in like an entry point to buy a stock If I already own it, should I go ahead and be looking to sell it don't forget to call invest talk eight eight eight ninety nine chart As retirement gets closer the questions often become more complicated How much can you afford to spend from where should you get your income? How should your portfolio change this isn't a game. It's your life KPP financial helps investors work through important decisions before retirement begins So learn more request a conversation or get a free portfolio review you can start now at invest talk dot com Let's go talk about the jobs report that came out on Friday Now we know that diesel prices are up dramatic lip 70% from a year ago and the longer that persists the Greater economic pressure everyone is going to feel That's already been felt to some degree and you see that in the latest jobs report which was softer than expected Unemployment unemployment rate did take up from 4.1 to 4.2 still low But did rise The establishment survey showed that we created 29,000 jobs in the month of September below expectations and even below the three and six month rolling moving averages And then you look at the previous reports from July and August those are both revised downward So the overall trend now is certainly a bit lower Now is this impetus for the Fed to pause well If you go look at the Fed watch tool You actually will say Yes, because they have a 77% chance that they will do nothing in At the end of this month October 28th is next Fed meeting then the final one is December 9th. There's still a Let's see 67% chance plus actually that 87 if you combine one to two x 87% chance. There'll be at least one hike between now and you're at So despite this number It's basically saying yes, they'll probably pause, but they'll continue to raise in December because it's all what's one data point The overall trend in the labor market remains up If you're looking at three months, there's six month moving averages, but the problem is that like I said at the top Diesel prices weren't there's high six months ago And it continues to weigh on the broader economy Even if you strip out The non-cyclical sectors you're still seeing the number of jobs created start to roll over over the past few months Then you might say that sounds terrible. Well, it depends on your Your perspective We have a stagnant labor force workforce because we don't how much immigration now I think our population growth is 0.1% year of year Which means that you don't need to create a lot of jobs to keep unemployment rates relatively low So in many ways the unemployment rate is a poor indicator right now If you look at things like manufacturing construction, leisure hospitality, these are all these all added fewer jobs And it's in September than they did in August and then you look at the inflation report PCE continues to rise And that's why the bond market continues to sell off Because they're reacting not to the labor market they're reacting to inflation That's what the bond market cares about And then real GDP still is that about 3% This quarter, which means that there's not a lot of impetus for the fed to stop raising rates maybe pause But definitely not stop raising rates. So that's why Interest continue or why the Yeah, it's just continue to rise and that this bad labor statistic Isn't causing a big market reaction Those drop it another listener question now. Hi, Leica Justin. This is Andrew from Buffalo Colleague about you Mac that's unusual machines ink There are technology companies that are primarily in the drone space I have a small tradition in it and It's just thinking about it anymore. I was wondering what you all thought about just talking where I said it Appreciate your take. Thanks Whereas testing inspection certification product market acceptance and risk mitigation software advisory services I'm not getting that drone company. So I'm not sure where that is coming from All these different systems and usual machines. Oh, that's why it looks like it is out of Australia It might be an OTC name. It isn't an uptrend. I like that Gather all this data. It's it looks like a small name. I'm gonna have to do a little deeper research on this and usual machines Okay, one billion dollar market cap Okay, pre-catch with a negative profitability negative. They do have some cash in their balance sheet Shares outstanding continue to move higher Let's look at their trend and free cash. Are they getting back getting to break even? No, things getting worse You know, this is one of those growthier names that you're just gonna have to Believe in the technology believe in the business because the business is not very good right now So I'm passing out of these different types of type of names that I like to invest in it. I like to invest in profitable companies And this isn't one of them All right, we're heading to a break. Give me a call now at eight at eight ninety-nine shirt At KPP financial Accountability means more than advice. It means we invest alongside you. Through our parallel investing approach, when we recommend an investment for clients, one or more KPP principles invest their own capital at the same time. Same day, same price, same percentage. If your portfolio moves, ours does too. That is alignment, that is transparency. That is the KPP difference. Visit investtalk.com to get your free portfolio review. Here's a quick heads up for our Southern California listeners. KPP Financial will be hosting an Invest Talk Retirement Summit. It's happening on Saturday, October 24th in Irvine, California. We'll be joined by guest experts in tax and estate planning, financial planning, and real estate. They will appear in person alongside the KPPT. It will be a focused discussion of five key areas that can shape your financial future. Seating is limited, attendance is complimentary, and guests are welcome. So, don't delay. Reserve your seat now by visiting investtalk.com. On the next Invest Talk, we'll look into this story, skilled trades Labor Shortage 2026, $1.7 million dollar job crisis in the investment angle. New reports as 1.7 million skilled trade jobs will open every year through 2035, and the experts have no idea who's going to fill them. This isn't just a workforce story, it's a work, it's a macroeconomic pressure point that could affect construction costs, infrastructure spending, and inflation for years to come. That story is for tomorrow, but for now I'm just in decline and ready to take your calls. Anytime an 8-8-99 charts of get your questions in, we'll live about 20 minutes left in the show. Now, my main focus point today concerns emerging markets and how they're under pressure. Well, some are. Some are being helped by us. Some are. I don't know if any are being helped by a strong dollar, but geopolitical instability can cut both ways, depending on what type of economy you have, what kind of resources you have. This environment is punishing those that import energy, those that have high dollars in nominated debt. But if you have a relatively clean balance sheet, and maybe you have a lot of resources like oil, natural gas, maybe refining capacity, well, this environment is actually helping you. It really depends on the country. For Asian countries, those that aren't very rich in natural resources or oil, energy is a massive input cost, especially because their economies oftentimes rely on manufacturing, which takes a lot of energy, a lot of times that energy is, or that electricity is fueled by burning some sort of natural gas or oil. So oil spikes, inflation surges, it forces emerging market central banks to raise interest rates because their economy is weakening. And that caused their economy to weaken even more because of higher funding costs, higher cost of capital. So countries like India, Turkey, Philippines, they all import the vast majority of their energy. So the trade deficit explodes. That is why those countries are under pressure. On the flip side, countries like Brazil, well, they have a lot of natural resources, they're large, they have a lot of oil, and petrobras. And so if you if you're to country in that situation, well, now you have a suddenly scarce resource that's worth even more, and it's filling your coffers. Know what about the dollar? The dollar's been strong, mainly because we're raising rates. And if you have debt within the corporate side or sovereign debt side, that's denominated in US dollars, which your revenue is in local currency, that is devaluing against the dollar, what makes it more expensive to service those debts. So historically, it has put pressure on emerging markets because it raises the risk of them defaulting, especially those weaker nations that are over levered. Now, the good news here is that a lot of developed markets, developed countries are actually in worse financial situation than a lot of these emerging market names. They saw what happened in the 90s with the Asian financial crisis and the European financial crisis in the early 2010s. And they said, no, let's beef up our foreign currency reserves. Let's reduce our debt. And so in the current environment, it's very bifurcated. Some are doing great, some are doing poorly. So what does that mean for you? Number one is avoid blanket selling, especially because it's so interesting. Go look at EEM, most common, most widely traded emerging market ETF, still an uptrend, spite the strength of the dollar, spite everything that's going on. Money continues to flow into these names, not away from it. Now, one of the reasons I think it is because these developed countries, including the United States, are becoming more emerging market-like. So instead of us being a clean shirt amongst the bunch of dirty shirts, we're just one of them now. But economically, from a debt situation, political volatility situation, that's one of the big reasons why emerging markets have struggled for so long, because you had politics that were very contentious, and as you had cues, their stability of their democracies were certainly in question. You could argue that in some ways here. So it's very interesting to see the emerging market ETF continuing to grind higher. It is not breaking down at all, which tells me what happens when maybe the Fed Act does pause. Maybe they only do one more hike. Maybe the high diesel prices eventually feed into the economy in force of recession. That's certainly possible in 2027, which would push the Fed to no longer hike, probably reverse policy, weaken the dollar. And I think these emerging markets would probably rally dramatically. So when you're looking at your emerging market exposure, yeah, you can go by EM or just a broad exposure. But overall, you want to gain exposure to commodity exporting regions, Latin America, Middle East, for example, underweight places like Asia, which is kind of the core layer of what we saw through the, you know, 2000s and 2010s, right, which is focusing more on Asia. That's where the growth was. Well, if free trade and globalization is no longer the name of the game, are they really going to be the winners? Being so far away from developed economies and resource poor, I don't know if that's going to be the case. So you really have to parse the traits of these different countries to understand whether they're attractive or not. Now, let's swing back to the best stock voice bank, you know, the number. As always, it's 888 and you're in charge. Hi, and best stock. This is Matt calling from Tel Aviv. I have a question regarding Abercambi and Fitch to resemble ANF. I don't know about their debt situation. I know their management has been better in the past few years. So I wanted to know if you're excited about it in the current price or should I wait some, see if it goes down a bit. Thank you very much. Love your show and I'll listen every day. All right. Looking at Abercambi and Fitch, ANF is the symbol. This has been a nice little rally since the low in May when it was at $70 per share and now at $141. So it's doubled. The question is, can this continue now from a momentum standpoint? Looks fine. The technicals look fine. So they're in $12.94 next year after $12.88 this year and $986 last year. This was one of those kind of dead brands for a long period of time and like the college said, they've I think approved their management and really getting their mojo back. Really what it is. They lost money during COVID, made only $0.25 a share in 2022, then $628.23, $10.69 in 2024. That's $141 stock. So based on four, looking earnings of nearly $13, you're talking about 11, 12 times four, looking earnings. That's that's cheap. They do have a little bit of dab of nothing worrying. You're talking about 500 million net debt on $6 billion market cap. So no debt issue there. They don't pay a dividend. They do have good cash flow, $566 million trailing 12 months. Return equity is 40%. That's good. And they're taking that cash flow and buying back shares, which is also smart. Use of their cash flow. But the question is, can the consumer hold in there? That's the problem. is the sector as a whole this is certainly consumer discretionary it's one of the better performers consumer discretionary stocks so you want to take note of that when there is out performance like that so what I like in the medium term short term I worry a bit because of once again the consumer long term the question is what is the staying power here we know you've seen this with Abercrombie itself be fashion industry is fickle could be hot for a few years and then suddenly a new name comes along and starts to steal market share and that name they used to be you know the talk of the walk so you said that's the term I don't think that's the term but they used to be you know all the rage is no longer right so that's the worry of long term and you can look at return equity of Abercrombie if you go back let's go back all the way yeah I mean in the early in the 90s or the 2000s the return equity was massive and then by 2010 turn equity fell to 8% kind of hung around barely positive for she's over a decade and now it's starting to get its mojo back the question is how long can this stay in vogue so I like it near term but I would it be married to me now from time to time we receive questions that came in via webform on besttalk.com and this one came from michael says I have a long term position in Paramez Hermes HESAY and the price share price has been falling for over a year it's had good growth and revenue earnings for cash loan margins despite the price drop is a stock always going to trade on China forecast alone is this a good opportunity to add. This is an interesting one. So Hermes is a luxury brand and we know that this has fallen pretty hard now yeah peaked out run $300 per share now at 146 so it's down 50% markup still 153 billion and free cash was only 5 billion. So not a very good free cash flow yield he hasn't really gone down but clearly the market is not you know look at this looking at my other tools here we have a bunch of different tools sometimes just take a second of pulling out okay yeah the technicals are really bad he's still high 30 times eternity let me see this still hanging in there as of last year though yeah I just I would get rid of it because the momentum is horrendous I think there is a sea change sea change coming in luxury goods I think they the whole industry is kind of squeezed every last drop of profit out of the space well you know the wealthy waiting to buy I think the average consumers squeezed out and is it are we in to an era where maybe buying vintage goods is cooler that's certainly a possibility so I just would not own this it clearly the market's telling you something I would pass on Hermes let's squeeze in one more question hey guys it's Stephen and Texas had a question I'm doing a home remodel and I cashed out some or I sold some equities that I had roughly $300,000 I didn't want to play games with that money because I needed to have it but now it's just sitting in my account not making anything kind of starting to get phomo is there anything I can put it in that's pretty safe and liquid that I would at least earn a little bit of interest while while I don't need it the next two three months or am I better off just putting it in my bank account letting it sit until I need to pay the contractor just curious I know there's like checking accounts and stuff but I still have it in my my brokerage account appreciate your time talk to you later well if it's in your brokerage account there are a million there are a bunch of short term money market type investments you can make now you probably want to talk to your broker if I don't know if that's fidelity or Schwab or where it is but see what they offer from a money market perspective that's super liquid you can go you can go add to it or go get that money whenever you need or you go buy an ETF we use Ask of SGOV I share zero to three month treasury bond ETF not much risk there pretty much no duration obviously there's the it's treasury so guaranteed by the OS government all of that that's very very low risk so something like that's gonna earn you probably you know a decent yield and obviously that deals going up with the fed raising rates so that's what I would put it in it just kind of depends on the instruction you really want to go how much trading you want to do or you just go buy a money market fund so yeah talk to your broker and yeah you can definitely park it to something that's gonna earn you something not a lot but something over the next few months that's the best talk I'm just inclined we have one goal here each and every week it's help you achieve your own version of financial freedom and I work continues after this final break to get your questions and right now it's 8.99 chart Invest talk is ready 24/7 for your finance and investment questions I'm hoping you'll give me your cake on or Matt technologies ORA is it a good idea to sell your losses in a Roth IRA and just use whatever you have left to reinvest into better stock don't forget to call invest talk 888 99 chart the Invest talk retirement summit is coming to Irvine California on Saturday October 24th for an exclusive in-person event it will focus on five key decisions that can shape your financial future reserve your place now at invest talk calm let's talk about debt mainly the United States debt levels much it's on the tip of everyone's tongue these days with interest rising every side we have $40 trillion in debt and it misses a lot of context number one our debt is actually a lot larger mainly because it's off-balance sheet think of what we promised Medicare and Medicaid coverage for millions and millions Americans as they retire in the coming years we promised that that's going to go on balance sheet the people that retire those boomers that continue to retire it every day they're no longer paying into the system and now they're going to collect same social security probably to run out that we're probably also been still covering so there's the trajectory is very high and will continue to go up that's the bad news the good news is even worried about this for a long time the national debt clock was built in New York City in the late 70s then by the 90s we stopped issuing 30 year bonds because we had a big surplus that also was demographically driven the boomers that were making a lot of money errors they were high earners at that time the stock market was booming so there's a lot of capital gains revenue and now in the opposite situation where our debt our deficit is what seven-ish percent of GDP which is massive especially in non-recessionary environment so things can change quickly and they likely will there'll be new leaders there'll be new solutions that are thought up there'll be technological changes to the AI that could cut both ways maybe that helps dramatically you have a geopolitical situation that a decade ago you never thought you never thought that we were going to alienate foreigners are by the buyers of our debt for example but that would create some sort of fragility in our our markets but then you look at other countries like Japan and you say well they have a lot more debt than we do compared to the GDP their economy's a lot less dynamic than ours and then you say okay what's happened recently with inflation it's gone up when I'm dramatically in 2022 a lot of government spending a lot of fed easy tight supply chains that pushed inflation you know eight nine percent and actually that was the biggest reduction in global debt ever because nominal GDP grew so dramatically those double digits and that's likely the path forward if said that for a while that most people are worried about o8 and that the market's going to crash and you're going to lose everything the reality is probable the other way, which is the bigger risk is inflation just stays persistently high. And then unless you keep up with that level of inflation by investing and taking some sort of risk, then your purchasing power is going to be eroded rather quickly. That's not only what you're experiencing now, but that's what history says. No country that's ever been able to print their own currency like the United States has defaulted nominally on their debt, meaning not paying. They default through inflation. That's what you're seeing right now. Another question is how will that impact the politics, right? You think 89% inflation was bad. It was much higher in the 70s. So how much inflation in the American people really stand? That's a big question. So I, well, I think we're the start of a debt crisis. This is probably the beginning. This is something that's very going to be very persistent for some time. It's not going to end tomorrow. We're going to be dealing with this for a while, and we probably won't see major changes until the situation gets much worse. Now I'm just inclined at reminding you about KPB financials parallel investing and we can trade for our clients, we can make the same trade for ourselves, same debt and same price, same percentage, no friend running, no special treatments we invest right alongside. Our clients for the same risk and potential for success and you can learn more by heading over to investtalk.com. Please tell your friends and family about a free podcast. Downloads we'll find any time at iTunes or Spotify and tell them about our October 24th event in Irvine, California at the Invest Talk Retirement Summit. It's free to join, free to attend, but you do need a pre-register once again over at besttalk.com. Do not delay. These spots are filling up fast and it's less than three weeks away. Independent thinking, sure success. It's the best talk, good name. Invest talk is a trademark of KPB financial because of the nature of the interactive dialogue inherent in the format of this program. It's important for the listener to understand that not all comments made will apply to that. Specifically, nothing said she'll be taken to be investment advice or shall statements on this program be considered an offer to buy or sell security. Because such advice is rendered solely on an individual basis and at times will require that the investor review a prospectus before investing. Invest talk is a copyrighted program of client, Pavless and Peasley financial, a registered investment advisor firm which retains all rights. For more information regarding KPB's investment advisors, call 1-800-557-5461. Thank you for listening and your comments and questions are welcome on our 24-hour listener line at 888-99-Chart. [BLANK_AUDIO]