00:00Barry Ritholtz, Chairman, CIO, Entrepreneur, Ritholtz Wealth Management.
00:05He has a number of properties, including Masters in Business on Bloomberg Radio.
00:10But he has a spectacular book.
00:13I'm not going to bore you with why it's so good.
00:15All you need to know, it tells you what not to do.
00:19What's the next step for the book?
00:21You came out with a beach reading this summer.
00:23This book has an oomph to it right now.
00:26What's the next thing?
00:27We'll do something fun with video, finding clever ways to illustrate some of the charts and tables and making them
00:35more interesting, more accessible.
00:38Let's look at it right now.
00:39I want to bring this in.
00:39This is Ritholtz, just classic Ritholtz here and how not to invest.
00:44Tiny errors, epic fails, and everything in between.
00:48How to avoid the avoidable errors investors are making in 2026 in September.
00:55What are we doing wrong right now?
00:56What do we need to avoid?
00:58So I think people, and it really depends on who you are, where you sit, what your portfolio is like,
01:03where you are.
01:05People are looking at the bond market and drawing all sorts of interesting extrapolations.
01:11There's a little bit of panic, not a whole lot.
01:14Oh, my God, what does this mean?
01:15Is this the war?
01:16Is this the tariffs?
01:17Is this inflation?
01:18What's going on?
01:19Well, some of that certainly is a factor.
01:22But when I look at this market and I look at the history of interest rates going back 50, 60
01:27years, this seems to be after 25 years of ZERP and QE and zero interest rate, seems like we're kind
01:37of normalizing.
01:38You go back to the 80s and 90s, people recognize that a 7% mortgage was fairly typical.
01:46Your prior guest, Jeff Rosenberg, implied we really didn't know how good we had it when rates were zero, mortgages
01:53were 3%, and it was free to borrow.
01:56And so this means that era is coming to an end, and we're shifting from monetary stimulus to fiscal stimulus.
02:07Related to the book, don't panic about this.
02:10Recognize it for what it is and look at your portfolio and consider, do you need to make a long
02:17-term shift in your equity exposure?
02:19If you're looking for tax-free yield, consider muni bonds.
02:23My New York state muni bond portfolio that I'm an investor in, 4.5% tax-free yield.
02:32That's the taxable equivalent of just about 8%.
02:35If I would have told someone five years ago, hey, I could get you AA-rated 8% yield, their
02:44heads would have exploded.
02:46It's been so long before bonds paid you to sit and wait.
02:51Okay, so maximizing your investments, maximizing your savings, that's certainly something everyone wants to do.
02:56But before you can get there, you have to have the money to be able to invest in all of
03:00that.
03:00And you've been looking into how Americans generate their wealth, how Americans create their wealth.
03:05And the answer is not by working at a company and getting a W-2.
03:10You can do well, but you can't generate a lot of wealth.
03:13Right, the new book, The Everyday Millionaire, The Everywhere Millionaire, talks about, and this is very much all exercise in
03:22confirmation bias,
03:24talks about how we really misunderstand where wealth comes from in America.
03:28We think, and the media focuses obsessively on tech founders and CEOs, but the average wealthy person in America,
03:39somewhere around the top 4% or 5%, most of them don't work for public companies, most of them aren't.
03:45Tech founders, they tend to be ordinary people running regular businesses that they have ownership of, own, don't earn.
03:55And things like dental practices, HVAC, auto dealers, things that you see in your everyday life that you encounter
04:05that you probably don't realize are putting these folks in the top 4%, which is about $25 million net worth,
04:14or somewhere around the top 10%, which is about $5 million liquid net worth.
04:22I'm going to do a Bloomberg Money Audible with Barry Ritholtz.
04:26When the Knicks were in the tank, he was their only loyal fan.
04:29I think there's also someone named Spike Lee, too.
04:32Yeah, I'll Spike Lee and Barry Ritholtz as well.
04:35I look at a repeat in the NBA, and I'm thinking of Jalen with his small business.
04:40Jalen Brunson is building out all of this, you know, the athlete thing and all that.
04:46How hard is it to repeat?
04:48I mean, they have a target on their back, right?
04:51Especially in the modern era where it seems that key players move around a little more frequently
04:56than they did back in the day.
04:58That's number one.
05:00Plus, after you win, everybody says, okay, what do we have to do to get past last year's championship?
05:07Look at how all the moves that were made when Golden State Warriors were on their tear.
05:13The same with the Lakers.
05:15Everybody kind of rejiggers in favor of them.
05:19I'm not going to be there opening night, but I will be there about eight seats away from Mike.
05:23I'm not going to be there, but I'm not going to be there anymore.
05:23I'm not going to be there anymore.
05:23I'm not going to be there anymore.
05:23I'm not going to be there anymore.
