00:00 Speaker A

So let’s say your client’s under 45. Okay.

00:01 Speaker A

How that’s different from uh older clients, what they’re looking for and like what the shape of um managing money is going to mean for like our peer set versus what I think our parents probably wanted.

00:10 Speaker B

Yeah, yeah. I think everyone eventually turns into their parents.

00:13 Speaker B

I I noticed the shift when Millennials, the oldest ones are in their 40s now. They start looking like their parents.

00:20 Speaker B

Before that, right, you know, the crypto trade obviously is a younger person’s trade. Like there’s not a lot of baby boomers calling me like, hey, like I need to get an Ethereum yesterday. Right?

00:28 Speaker B

It just doesn’t happen. Um you you see with most younger clients, they’ll say they probably have a crypto portfolio.

00:34 Speaker B

They’re probably sad they have it right now cuz it’s not doing so well. It wasn’t the hedge that everyone promised that it would be.

00:39 Speaker B

But I also think the other component right now that’s really interesting is all this private credit that’s been sold.

00:45 Speaker A

Yeah.

00:46 Speaker B

And I’ve been doing this for 25 years. Um I think it’s Jesse Livermore is a famous trader from the 20s has a famous quote that was, you know, there’s no new errors on Wall Street. Stock speculation is as old as the hills.

00:55 Speaker B

So in my mind, whenever something’s new or something, you know, avant guard is happening in the markets, I’m just like, okay, what in the past can we learn from this?

01:03 Speaker B

And private credit has been pitched very hard to firms like mine. And I was just thinking, man, this reminds me so much of the real estate crisis when we had all those mortgage back securities, where they love to sell you something that has a really high yield.

01:16 Speaker A

Yep.

01:17 Speaker B

And guess what? It doesn’t price, so it doesn’t feel like it’s volatile, but it’s just not priced. Um and there’s like, you know, gates around when you can get your money out.

01:23 Speaker A

Yeah.

01:24 Speaker B

And when you have illiquidity in retail clients, it’s like the worst combination ever.

01:29 Speaker B

So to me, I saw this happening a couple years ago. I was like, oh, this is going to end up just like uh you know, the way a lot of these other funds during the financial crisis end up.

01:36 Speaker B

Now I don’t think it’s systemic for the whole financial industry, but anyone in these funds, those things that that valuation is just going to that value is going to keep just eroding over time. It’s going to keep just deflating in my opinion.

01:43 Speaker A

Yeah.