Mullooly Asset Management

MAM 186: Tim & Tom Talk Everything ETF’s – Transcript Tom Mullooly : Welcome to episode 186. That’s episode 1 8 6 of the Mullooly Asset Management podcast. This is Tom Mullooly. I’m here with Tim. Tim: Hey, everybody. Tom Mullooly : We want to talk about a topic that’s near and dear to our […]

MAM 186: Tim & Tom Talk Everything ETF’s – Transcript

Tom Mullooly :

Welcome to episode 186. That’s episode 1 8 6 of the Mullooly Asset Management podcast. This is Tom Mullooly. I’m here with Tim.

Tim: Hey, everybody.

Tom Mullooly : We want to talk about a topic that’s near and dear to our business, exchange traded funds. Before we walked in here to record this, I looked up and went as far back as I could on the mullolly.net website and I saw that I actually wrote about exchange traded funds in January of 2007.

Tim: Wow.

Tom Mullooly : We’ve owned them longer than that.

Tim: Right.

Tom Mullooly : In fact, when I was a broker, I owned shares of S-P-Y, SPY, the very first exchange traded fund for some family members, and I had to constantly explain to them for the first three or four years what this actually was. I don’t consider myself a pioneer, but an early adapter.

Tim: Good way to put it.

Tom Mullooly : Yeah. They have a lot of benefits, and that’s what we really want to talk about in episode 186. Tim and I have prepared a couple of questions. We haven’t gone over all of them, so we’re going to have a free wheeling discussion about exchange traded funds. Tim, I’m just going to throw this one out. We can answer each other’s questions or pitch on things that we may want to add for reinforcement, but why do you think advisors, and especially Mullooly Asset, are using exchange traded funds instead of buying individual stocks or mutual funds?

Tim: Well, to start off, addressing why we would buy that instead of stocks, first thing that comes to my mind would be the risk that comes with owning individual stocks. We’ve seen it all happen before. Names like Enron come to mind where stock out of nowhere just crumbles to the ground. An exchange traded fund being a basket of stocks, you can still give your clients exposure to certain stocks that they might want in their account, but having it all wrapped under one ETF, one ticker symbol, is a good way to dissipate the risk that one single company could potentially blow up someone’s portfolio.

Tom Mullooly : That’s a good way of putting it. I’ll also add to that that sometimes we’re going to see sectors move, and sectors are a lot like schools of fish.

Tim: Right.

Tom Mullooly : It used to be, when I was a broker in the ’80s, if oil looked good, we would buy Exxon. If technology looked good, we would buy IBM. If a sub-sector like semiconductors looked good, we would buy Intel. In our work with Dorsey Wright, we have been able to build these matricis that show the top performer from top to bottom. If we do it the old way and say, “Well, semiconductors are doing well, so let’s buy Intel,” and Intel’s at the bottom of the matrix, meaning it’s the worst performer or near one of the bottom performers in the group, you’re just not going to get that move.

We can capture the entire sector now. Instead of going in and trying to cherry pick which stocks are going to do the best, we can buy the whole sector when a sector’s going to outperform. One of the things that Tim brings to the meeting every week is this report on technical attributes and score direction. You want to talk a little bit about that?

Tim: Sure.

Tom Mullooly : Not really what we thought we’d talk about when it comes to ETFs, but it does help to paint the picture.

Tim: It kind of ties in. Right. Every week I run this report on Dorsey Wright, and they have their different rankings of scores that they give to each sector. One thing that you would like to see is a score direction being positive, meaning that it’s trending upwards or that sector has been performing better than other sectors in the past. I bring it every week.

Our guest for this episode of the podcast was Angelo Fiouris.  Angelo works for Altice Media, but people in the New Jersey area probably know the company better as Cablevision.  Angelo talks with Tom about the ever-changing industry of advertising on cable television, and sheds some light on some common misconceptions surrounding the business.  It […]

Our guest for this episode of the podcast was Angelo Fiouris.  Angelo works for Altice Media, but people in the New Jersey area probably know the company better as Cablevision.  Angelo talks with Tom about the ever-changing industry of advertising on cable television, and sheds some light on some common misconceptions surrounding the business.  It was truly a pleasure sitting down with Angelo, and we hope you enjoy the conversation!

MAM 185: Angelo Fiouris of Altice Media Transcript

Tom Mullooly: Welcome back to the Mullooly Asset Management podcast. This is episode number 185 and our guest today is Angelo Fiouris from Altice Media Sales. Angelo?

Angelo Fiouris: Thanks for having me.

Tom Mullooly: Glad you could join us today.

Angelo Fiouris: I’m excited to be here.

Tom Mullooly: Who in the world is Altice Media? You want to talk a little bit about that?

Angelo Fiouris: Sure.

Tom Mullooly: I don’t think that’s a name, a household name, yet.

Angelo Fiouris: It’s not. It became one today, perhaps. Leading up to today, I don’t think there’s a great awareness of the Altice brand just yet. The reason for that is because they’re based in Europe. Altice is based in Europe. They’re a French company based in Amsterdam.

Tom Mullooly: So what Angelo is referring to is we happen to be recording this on the day that Altice Media went public.

Angelo Fiouris: That’s right. Altice USA went public today, the initial public offering. Pretty exciting day. We rang the bell at the stock market and everything today, so 200 employees were on scene and it was an exciting day for the company.

Tom Mullooly: All right, so tell us what your role is with Altice.

Angelo Fiouris: Sure. Basically I’m an account executive, right? What does that mean, I’m more of a consultant. I see myself as a guy that provides solutions to businesses that know they need help and to businesses that don’t yet know that they need help.

Tom Mullooly: I think you could probably count Mullooly Asset Management in that second group. We didn’t know that we needed help.

Angelo Fiouris: You might think that initially, but before you and I met, we had the appointment booked. I did a little research on you guys and I went to your website. I had looked at what you were already doing and I said, “Wow, these guys are ahead of the game. They have a podcast, they have a blog, they’re doing things that most small businesses don’t do.” Although you thought you didn’t have any help, you were actually helping yourselves. Now you’ve got the domination combination of TV with your digital efforts. You were farther ahead than you thought you were.

Tom Mullooly: (laughter). Do you want to talk a little bit about how we actually began working with you?

Angelo Fiouris: Sure. If I recall correctly, I got a call from your son, Tim, or an email from Tim on the Friday of Labor Day weekend. I won’t forget that because it was 2:00 in the afternoon and I said, “Wow, I’m not the only guy that works on a Friday afternoon before a holiday.”

Tom Mullooly: He’s got a slave driver for a dad.

Angelo Fiouris: There you go, right? I gave Tim a call that afternoon and we made the appointment. You guys were referred to me, if I’m not mistaken … I can’t remember where that was from. Oh, here’s what it was. Tim had filled out the online … that’s what it was. Yeah, that’s what it was. Online, we request some information regarding, so I had to think about that for a minute. There it is.

Tom Mullooly: We met in early September and our ads were running at the end of October.

Angelo Fiouris: I think the middle of October we were live, the third week or something like that. It didn’t take long.

MAM 184: Tim & Tom Talk DOL Fiduciary Rule Transcript Tom:    Welcome to the Mullooly Asset Management podcast. This is Tom Mullooly, and I’m joined by Tim Mullooly. Tim:     Hey everybody. Tom:    This is episode 184. Tim:     184. Tom:    I almost said 185. Tim:     Yeah. Tom:    We’re going to talk about a topic that we […]

MAM 184: Tim & Tom Talk DOL Fiduciary Rule Transcript

Tom:    Welcome to the Mullooly Asset Management podcast. This is Tom Mullooly, and I’m joined by Tim Mullooly.

Tim:     Hey everybody.

Tom:    This is episode 184.

Tim:     184.

Tom:    I almost said 185.

Tim:     Yeah.

Tom:    We’re going to talk about a topic that we covered a few episodes back in December, but apparently …

Tim:     It’s back.

Tom:    It’s back. We need to revisit the Department of Labor changes that are coming now on June 9th.

Tim:     That’s right. Yeah. Does everyone remember that DOL rule that people were talking about a lot last year? Well, like Tom said, it’s coming back, June 9th, so next week, it’ll go into partial effect, not full effect.

It was scheduled originally to go into this partial effect back in March or April, I think, but it got delayed, but it’s finally going into somewhat of effect, so we figured we would give everybody a refresher as to what this rule is, who it affects, and the ins and outs.

Tom:    A couple of things that, I think, are important. Tim’s right in the sense that this was originally supposed to be in place April 10th and with the full effect of January 1st of next year, 2018, and that full implementation date …

Tim:     That’s still the case. That’s still set. Yup.

Tom:    Yeah. The major change … I sat on a panel at NASDAQ at the end of November discussing the Department of Labor changes. At that time, we didn’t know it was going to get pushed back like it has, but I remember speaking with a reporter afterwards and I said, “For one of the few times in my career, I can remember being the after picture, not the before picture,” because it sounds like, on the surface, that they would prefer to see advisors gravitate more towards the business model that we’ve got here at Mullooly Asset Management.

Tim:     Right. Yeah. For us here, as a firm, not going to have too many big changes to put into effect with this rule. It’s more going to affect people in the broker/dealer side of things, but it’s just going into partial effect on June 9th, so what exactly does that mean?

Tom:    June 9th happens to be a Friday, so I think everyone’s going to be good over the weekend.

Tim:     Right.

Tom:    They’re not going to really enforce any of the rules on the very first day that this is in place, and it’s kind of … What was the analogy that you saw in a magazine?

Tim:     I think one article in Forbes said there is a “no bite” during this partial effect period, meaning, the rules are there and they want you to abide by them, but there’s not going to be any real enforcement of them until the January 1st full effect.

Tom:    They’re kind of making a trial run.

Tim:     Right. Just a dry run to … You could call it a “soft open”, when you open a restaurant, I think, was the quote from the Forbes article. Even though you know you have to act in the best interest of your investors, there’s no one really enforcing it.

Tom:    It’s pretty amazing to think that between basically now and January 1st, we’re going to force people in the industry to act in the best interest of investors. Are you kidding me?

Tim:     Shouldn’t that have always been the case?

Tom:    Right. I just want to read some things that were in the Department of Labor frequently asked questions. If you want to read the entire rules that they put out, go right ahead, but they put out a couple of these frequently asked question guides and they’re excellent.

Tim:     They’re much easier to read for everyday people.

Tom:    What they talked about was during this transition period,

Our guest on this podcast episode was Drew Anlas.  Drew works for NJ Lenders, a mortgage banking company here in New Jersey.  Drew has been a mortgage banker for 34 years now, and has a keen eye for the way things should be in the business.  Drew is most definitely a people-person, and loves interacting […]

Our guest on this podcast episode was Drew Anlas.  Drew works for NJ Lenders, a mortgage banking company here in New Jersey.  Drew has been a mortgage banker for 34 years now, and has a keen eye for the way things should be in the business.  Drew is most definitely a people-person, and loves interacting with people.  As you may have gathered from this episode’s title, if there are people involved, count Drew in.  This was a truly fun interview, and we hope you enjoy it as well.  To learn even more about Drew, follow this link here to his LinkedIn page!

 

Tom: Welcome to the podcast. Today my guest is Drew Anlas. Drew is with NJ Lenders and this is episode number 182, 182. Drew, welcome to the podcast.

Drew Anlas: Thank you Tom, and thank you for having me today. I appreciate it.

Tom: Let’s start out and tell us what you do and then we’ll get into a little bit of history.

Drew Anlas: Yes Tom I’ve been a mortgage banker for 34 years now. I started on Valentine’s Day in 1984 for a now defunct bank called Shadow Lawn Savings and Loan where I learned the trade and moved out onto my own in 1987, and I’ve been doing it ever since.

Tom: Wow. So you started working in a bank and now you’re with NJ Lenders which is a mortgage broker.

Drew Anlas: Mortgage banker.

Tom: Okay. So explain so we can understand a little better, because you’ll find mortgage people that work in a bank and then you’ll find mortgage bankers and mortgage brokers. Can you shed a little light on the differences?

Drew Anlas: Yeah, and that’s a very important question. I get asked that a lot, the difference especially between a mortgage broker and a mortgage banker. The difference between a banker and a broker is a broker cannot issue their own commitments, they do not lend their own funds, they’re brokering to a third party source to do basically all of the hard stuff. They do the processing, but then they rely on outside bank underwriters, other banks to supply funds, et cetera. As a full fledged mortgage banker you can originate, approve, close all of your own loans, which is what we do using bank warehousing lines. So when we close a loan and then we sell the loan we’ll replenish our warehousing lines so we can lend again, and again, and again. So a bank is just whoever they are, they’re a lending source for whatever loan products they have. As a banker we can sell to 45 to 50 different lending sources around the country, therefore giving the customer the ultimate opportunity for product rate, et cetera.

Tom: So that also gives you a lot of flexibility if you’re trying to help someone get a mortgage and it doesn’t go through what you would think a traditional channel you can go elsewhere.

Drew Anlas: Yes, and it’s important. Our underwriters and our loan officers have to know the guidelines and the rates every day of over 45 to 50 different lending sources. So it is challenging because you do not only have to know one product line, you have to know 45 or 50 product lines. But as I’m sure you in the financial world and insurance it’s similar to that where you have access to a lot of different avenues to go. So an advantage is being able to help a customer if they’re not fitting inside the box 100%.

Tom: Right. Well that’s a lot of moving parts there.

Drew Anlas: Yeah. I relate getting mortgage to putting a jigsaw puzzle, and the jigsaw puzzle you’re missing that one piece and you’re sitting there fighting trying to get a loan approved or closed and you got to find that missing piece. So when you go to a one dimensional source if you’re missing that one piece and you can’t find it you’re done where we can maneuver and try to figure out...

There’s a lot of buzz flying around about hot IPO’s.  On this episode of the podcast, Tim and Tom sit down to discuss all things IPO-related!  If you have ever wondered “what exactly is an IPO?”, or “am I the type of investor suited for an IPO?”, give this episode a listen.  You can find […]

There’s a lot of buzz flying around about hot IPO’s.  On this episode of the podcast, Tim and Tom sit down to discuss all things IPO-related!  If you have ever wondered “what exactly is an IPO?”, or “am I the type of investor suited for an IPO?”, give this episode a listen.  You can find the transcript of the episode below, and we hope you enjoy!

TRANSCRIPT:

Tim: Welcome to the podcast this is Tim Mullooly. Today I’m here with Tom Mullooly and we’re going to be talking all about IPO’s or initial public offerings. There’s a lot to know about IPO’s. Some people don’t really know what to make of them or if they’re good or not to buy or what should we do with them. We’re going to kind of spell it out for you, get into the what to know about IPO’s.

Tom: Tim, I think really before we get into anything further about initial public offerings or IPO’s, why don’t you just explain to our listeners what is an initial public offering.

Tim: Right, probably a good place to start, an IPO, initial public offering is also, it’s the first time that a stock of a private company is offered to the public. The company has been private for a little while, they decide we want to go public and offer some shares of stock to the outside world so they have an initial public offering.

Tom: When I’m buying shares of XYZ or ABC on the stock market and it’s been trading for years and years, how much money does XYZ or ABC actually get when I buy their stock?

Tim: They don’t get any of that.

Tom: Right, yeah so the only time that a company gets money from through a stock sale is the initial offering. The first time that they are, because they’re the sellers of the stock, anytime that you’re selling stock you get money in your account. When you’re buying stock, you’re taking money out of your account and you’re investing it into something. The initial public offering is the first time that you’re going to be permitted to buy the stock.

It’s also the only time that the company actually gets the money from this sale. Now there are times where companies will do what’s called secondary offerings. They take some of their shelf stock and they say we’re going to issue five percent more shares as a way to raise money for the company. Really, the biggest way for people to get in on the ground floor unless you’re an insider is through that initial public offering. I think a lot of people, new investors may not understand when you’re buying shares of Microsoft, Microsoft doesn’t get that money. You’re actually just trading hands with someone else who’s looking to sell Microsoft and you’re buying their shares, that’s really how it works.

Tim: Yeah and there’s a lot of different market adages that you’d hear about IPO’s. Sometimes if an IPO goes down people will say, well that’s just the insiders selling their shares, why would you want to buy the company if the insiders are selling.

Tom: That’s a really good point and a lot of IPO’s or initial public offerings, if they don’t work out that seems to be the recurring theme that you hear, well the insiders are selling which technically is true.

Tim: It’s true but it’s easy to say that in hindsight.

Tom: There’s so many reasons why a stock can go down. Very few of them have anything specifically to do with that company, maybe their sector’s out of favor, maybe that the market went down, the market was pulling back when the company went public. That’s out of everybody’s control. Yeah, we hear that a lot when folks buy or there’s a popular initial public offering that a lot of people want and the stock goes down. Well the insiders are selling,