Barry Ritholtz-This Week’s Podcast

Barry Ritholtz is Chairman and CIO of Ritholtz Wealth Management, which has over $5 billion under its umbrella. Ritholtz also hosts the Bloomberg podcast “Masters in Business,” as well as appearing on Bloomberg, CNBC and Fox Business on a regular basis. Barry has a new book, “How Not to Invest: The Ideas, Numbers and Behavior That Destroy Wealth—and How to Avoid Them.” We discuss investing and so much more!

https://podcasts.apple.com/us/podcast/barry-ritholtz/id1316200737?i=1000702035214

 

 

 

https://music.amazon.com/podcasts/9ff4fb19-54d4-41ae-ae7a-8a6f8d3dafa8/episodes/6dc0a650-0820-483f-a307-c2722f6d0891/the-bob-lefsetz-podcast-barry-ritholtz

Tariffs

Let me be a Republican here…

WHY DO I HAVE TO PAY?

I’m a law-abiding citizen, I pay my bills and my taxes, why should I support exactly who by paying more for my goods?

Yes, that’s the Republican ethos. Screw the takers. I earn my salary, I should pay few taxes and the government should be shrunk.

Not that I’m not pissed at the Democrats here… If I hear one more dyed-in-the-wool left wing baby boomer tell me that we need to bring manufacturing back to America… Yeah, and are you willing to pay $1000 for a flat screen?

We’re addicted to cheap goods made in developing countries oftentimes where workers are underpaid. Sure, there are sweat shops, sure there are abuses, but the bottom line is people want these jobs, to advance their economic status. Whereas…

Good luck finding an Anglo cleaner in Los Angeles. Or a citizen to pick grapes. Because Americans don’t want to do those jobs. They don’t want to do back-breaking work for almost no money.

Of course the minimum wage should be raised, of course people should be able to afford food and shelter if they’re working forty hours a week.

But adding tariffs to all these products…

Mexico didn’t pay for the wall and the suppliers are not paying the tariffs… WE ARE! WHY?

I don’t want to get into all this trade balance crap. Which Trump has overstated anyway, but do you know how many of your everyday products were made overseas? And if you try to make them in America, the cost is prohibitive. So…

I won’t buy an American car. Period. Forget personal experience just check out the ratings in the annual auto issue of “Consumer Reports.” Toyota wins the race, with its sister brand Lexus right along side. This is not the sixties, when you purchased a new car every two years. Cars are nearly prohibitively expensive these days. I’ve never purchased a used car, but the next one I buy probably will be. I don’t want to pay the outrageous price and immediately be hit with that depreciation. I’ll leave that for the truly wealthy and the poor who lease because that’s the only way they can afford a new car, even though they’re getting screwed financially, like with their credit cards.

My ski boots are made in Italy. Actually, Lange is an American company that was sold to the Europeans. Thank god I bought them at the beginning of the season, otherwise I’d have to pay three digits more for…nothing more. So Trump can bring back manufacturing to America that isn’t going to come back?

Yes, I’ll pay extra for a foreign car, because I’ll save money in the long run. I’ll pay the premium, because I want the best. Does Trump really think I’ll settle for less?

And protectionist countries always fall behind economically. Their industries stagnate and frequently they meet their demise. Or else the government forces citizens to buy substandard products.

We live in a world economy, period. We’re not going back, because it makes no sense. Some products are best built outside the home country.

And the retaliation?

Mark Zuckerberg kissed Trump’s butt and now he’s definitely going to get f*cked by the Europeans.

How to win friends and influence people.

I won’t even mention the lack of tariffs on the Russians. I don’t even recognize my country. It’s like something out of a history book. We’re just going to take Greenland? Sovereign nations and borders don’t mean anything? What, does Trump think he’s Napoleon?

And history tells us that the residents of these taken over countries may not get over it for CENTURIES! Why upset the world order?

Do I think Trump knows what he’s doing?

Absolutely not. The truth is the less fortunate spend their entire paychecks staying alive, they’ve got no extra money. And now they’re going to have to pay MORE? Not every product can be made in America. And not every foreign company is going to move here to make stuff. Not to mention stuff made overseas is oftentimes so much better.

Now I read the tariff news today, with the third term baked into Trump’s pronouncement, and you know what my first instinct was? I GIVE UP!

Really it’s the law firms. Everybody’s entitled to a defense. And now you’re afraid of Trump and giving the government free services (and I’m stunned how large these numbers are, evidencing that these law firms are making TONS of money).

And the educational institutions.

Everybody’s being practical, saying they want to save their enterprise.

Where did this ethos come from? That’s not how I was brought up. I was brought up that you do what is RIGHT! That you sacrifice everything for what is right.

But now our entire nation is afraid of speaking up. Did you read about that Mexican act that can no longer tour America? This is the kind of stuff that we read about in foreign countries and shook our heads, now it’s HERE!

And if you read the above and blow back with some MAGA B.S…

The joke is on you. Because you’re going to pay the tariffs just like I am. The benefit, if there even is one, is never going to float down to you. But for you to question your belief…

This is not sports. Rooting for the Red Sox or the Yankees. Arguing in bars. This is real life, these tariffs are going to affect you and me and to what benefit?

No one is standing up.

As for Cory Booker… A lot of good that did. You’ve got to hit these people where it hurts, like the 13% decline for Tesla. Everything comes down to money, and we’re the ones who have it. Consumer spending is the lion’s share of the economy. Despite these tech doofuses, these billionaires thinking they earned their wealth. Oh yeah? If we didn’t buy your products you’d be NOWHERE!

But the public is too dumb and too uninformed to wake up and smell the coffee.

It ain’t morning in America, it’s closing in on midnight. You’re going to wake up one day and realize how much this country has already lost, with all this insane downsizing, and you’ll be paying more for all your products and it will be too late to do anything about it. And if you speak up, no one will rally to your defense, like the law firms sitting on the sidelines and refusing to defend Perkins Coie.

But you’ll compete with other influencers for the last buck, listening to mindless drivel and getting drunk, happy that you’re still alive.

Life is more than that.

Kat Abughazaleh

WHO?

I saw the headline online, something about an influencer running for Congress. That’s all I needed to know, I didn’t have to peruse the article.

And then someone sent me the video.

What do they say about stardom? You know it when you see it?

Kat Abughazaleh is a star. Just watch. You’ll get it.

First and foremost she’s running against an 80 year old incumbent. Just by posting on YouTube she shows up the ancient Democrats still in control.

But it’s the way she speaks, directly to the camera, the way she delineates the issues, the way she radiates INTELLIGENCE! And PASSION!

I don’t care which side of the political fence you’re on, you’ll get it. She’s going straight for the jugular, with no B.S. And she’s not talking down to the audience, rather she does a good job of conveying she’s on their side.

Now compare this to music videos…

First and foremost, most of the acts are nitwits. They didn’t go to college, many have been trying to make it before puberty. And they’ll do ANYTHING to make it.

Save me the backlash about education. But in truth most learning in college does not take place in the classroom. It’s hanging with new people, working out ideas, developing your identity.

But somehow education has been seen to be elite.

In any event, is it a crime to be intelligent?

So in most music videos the acts are either begging or talking to you from a fantasy land. It’s not really about their music, it’s about their career…please listen to me, MAKE ME RICH!

And when they’re not making videos, the acts are complaining that the game is rigged against them. Do they expect us to have sympathy for them? After all, there’s neither a dearth of performers nor stars, it’s not like we’re all sitting at home upset that there’s just not enough new music. In other words, these bitching acts who desire attention…their pleas are falling on deaf ears.

What we all want at home is something that benefits US! Something that we can resonate with. Something that not only gets our attention, but we want to tell others about.

And very little rings this bell.

Then again, it’s not the 1960s, never mind the 1970s, when music was exploding and defining the culture. Today it’s like the 1950s. There’s a business, there’s product, but the entire world is not focused on new acts and their output.

But the entire world seems to be paying attention to influencers. What are they selling, how are they projecting, what is it that draws viewers to them?

Of course, of course, there’s much more dreck than quality. The hit to sh*t ratio in the influencer game is even worse than it is in the music world. But those at the top, they’ve got that je ne sais quoi, you can’t take your eyes off them, not only are you drawn to them, you’re drawn BACK TO THEM!

But in music we have songs written by committee, produced and mixed by the usual suspects, turned into flashy turds. Whereas the influencer world is all singular. That’s part of Kat’s pitch, it’s her, no consultants, no focus groups… This is what the internet makes possible, the ability to go directly from creator to fan, but too many in the music world are still looking for a leg up…won’t somebody sign me, won’t somebody give me money?

Oh, now I’ve pissed you off. You’re not like this, why do I keep raining on your parade?

First and foremost these are generalizations. Do you think I’m going to listen to all of the hundred thousand tracks uploaded to streaming services each day?

Maybe you’re the exception.

Then again, everybody thinks they’re the exception.

Now subsequent to watching Kat’s video I read this story in the “Washington Post”: 

“Kat Abughazaleh, from YouTube to Congress? – At 26, she’s challenging a House incumbent who’s held the seat since before she was born. Is this the beginning of the Democrats’ ‘tea party’ moment?”

Free link: https://wapo.st/42dwyvw

Now the devil is in the details. First and foremost, Kat’s a carpetbagger, she’s not a native of this district (not that that hurt Lauren Boebert!) Also, she’s of Palestinian heritage and she’s not a supporter of Israel’s activities in Gaza and the West Bank, and this is a heavily Jewish district.

But this is not about Kat Abughazaleh, this is about a younger generation doing it a different way, employing the new tools to convey an honest message. Not waiting in line for anointment, but taking the reins. They’re mad as hell and can’t take it anymore.

Meanwhile, all the boomers and consultants will tell you young people don’t vote and they don’t have any money to donate and therefore they should be ignored.

What can I tell these ancient stuck in the mud know-it-alls?

Be afraid, be very afraid.

Change can happen in an instant. It’s about channeling discontent.

Isn’t that what Trump did?

Now we’ve got Kat Abughazaleh.

But she’s not the only one.

(And it’s interesting that it’s a woman, not a man. Too many men believe they’ve gotten a raw deal in society and want to throw a spanner in the works. This is the essence of “Adolescence.” In a world of online dating, what are the odds you’re going to be picked if you’re not good-looking? Almost zilch. That’s what the 80/20 rule is all about. It’s the women who are leading today, because they’re more educated and unafraid, having a built-in support group online. Men put each other down, trying to climb a greased pole. Women stick together, soothe and support each other. Sure, there are mean girls, but if you dig a little deeper…)

Superstar AI Album

I’m not sure AI is the bogeyman the major labels have gone on record it is. Don Was said AI will end up being a tool, just like the drum machine.

Then again, a lot of drummers are still pissed about that.

But Don told me he realized the possibilities when he heard Prince’s “When Doves Cry.” New technology enables creativity.

As for AI itself, did you read that opinion piece in yesterday’s “New York Times”?

“The Tech Fantasy That Powers A.I. Is Running on Fumes”

Free link: https://www.nytimes.com/2025/03/29/opinion/ai-tech-innovation.html?unlocked_article_code=1.8U4.NJB6.z563A54Ac8q1&smid=url-share

Here’s the money quote:

“A.I. may be a mid technology with limited use cases to justify its financial and environmental costs.”

In other words, AI might not be the revolution everybody thinks it will be.

Anyway, what we do know is every technological breakthrough begins with music, it’s the canary in the coal mine for digital disruption. Because the files are small and people want the product. So it’s no surprise that the first entertainment industry AI project is one centered on music.

Now if you’ve been following this story, you give prompts to your software platform of choice, and then it renders almost instantly a product that seems very similar to the music of the act that was inputted. You get a new Beatles or Beach Boys song that may not be innovative, but it definitely sounds like the original act. And this scares everybody.

But now the acts are taking control of the technology. Which the labels refused to do in the era of Napster. Superstars are working with AI to create brand new tracks that everybody in the world will want to hear. I know, I’ve been privy to some of the recordings, they’re AMAZING! Not like that lame McCartney supervised “Now and Then.” This is not old recordings, these tracks are BRAND NEW!

Made with OpenAI’s new product, MusicGPT.

I don’t know if you’ve been following this, but Sam Altman and Elon Musk hate each other. Once Musk was invested in OpenAI, now he’s a competitor. You might have seen that Elon merged X and xAI just a few days ago. Belief is AI is a zero sum game, there will be one winner and a bunch of also-rans.

You may have read this article in today’s “Wall Street Journal”:

“I Quit Google Search for AI—and I’m Not Going Back”

Free link: https://www.wsj.com/tech/personal-tech/google-search-chatgpt-perplexity-gemini-6ac749d9?st=YYC6Ur&reflink=desktopwebshare_permalink

Bottom line, Google may not survive, at least as a dominant company. It may be the new GE, or even Polaroid. I know that I rarely look beyond the AI generated answer, and this article says that Google’s AI is inferior.

Anyway, Sam Altman has been working on this music product for a long time now. He just hasn’t introduced it because of endless legal issues, fearful it will be shut down before it’s even launched. But Altman has been encouraged by Anthropic’s victory last week. Hell, I’ll quote the AI generated headline from Google:

“Anthropic scored a win this week after a U.S. court denied an injunction that Universal Music Group and other record labels had sought to prevent the artificial-intelligence company from using copyrighted lyrics to train its AI models.”

But really, that court decision is just the cherry on top. The real driver here is Trump. That’s what this whole album is about, to raise money to stand up to Trump.

So Sam was at dinner with Lucian Grainge and Irving Azoff when this idea was hatched. Lucian controls the lion’s share of the acts and Azoff and his family pulled off FireAid in nearly an instant, so…this has been happening at light speed.

Since the album needed a producer, and since Don Was has gone on record about AI as per above, it is Don Was. He didn’t produce each and every track, but he’s overseeing the project.

So it starts with the Eagles. The new song is going to feature Glenn Frey on lead vocals. It sounds kinda like “Take It Easy,” but there’s a reference to a private jet instead of a flatbed Ford.

And since Irving manages John Mayer, there’s a new Dead track, with John duetting with Jerry. It’s called “Futuristic Dead.” It’s a whopper.

And once you have two superstars involved, everybody else wants in. Scott Rodger told Irving that McCartney wanted to participate.

As for the new track… McCartney wanted to make it his own, but ultimately he decided to follow the model of “Every Little Thing,” which he wrote and John sang. Yes, John is truly coming back from the dead. There’s another track in the can, a protest number, entitled “Autocracy,” but it’s not going to be on the album. Yoko’s planning to release it on what would have been John’s 85th birthday on October 9th.

And everybody knows that you’ve got to have the youngsters too, so…

There’s Billie Eilish and Lady Gaga and…

Morgan Wallen was in, but after he walked off the set last Saturday night on SNL his track was stricken. Yes, secretly Morgan is a Democrat, WHO KNEW?

Of course Jason Alden is a Trumper, so he’s not included. But Eric Church is there, along with the Chicks, who I’m not sure are country or pop at this point.

And Jason Isbell, purely for credibility.

And negotiations were interminable, because she needed to own the master, but ultimately Taylor Swift caved and is included, she realized it was a bad look to be left out, and she notoriously endorses Democrats anyway.

But here’s the true kicker…

BOB DYLAN!

But it gets better than that. AI has brought the Band back from the dead and Bob has written a new PROTEST song! Yes, it’s been decades, but the moment is now. You’ll love it.

As for the number of tracks, it hasn’t been finalized.

At first the belief was there should be twelve, like on the albums of yore.

Then it was pointed out that the modern paradigm is to record an album of thirty or so tracks, which generate tons of money if the music is a hit. The Morgan Wallen model.

There will be more than twelve, since so many people wanted in, but…the final number has not been decided upon.

The album’s release date is July 4th. And it will be celebrated with a live concert at the Sphere, beamed across the world. But to get the full effect, you’ve got to use an Apple Vision Pro. Go to your local Apple Store and register. They’ll be giving away twenty at each location.

It’s a win-win for Tim Apple. Who’s pissed that Trump is cracking down on LGBTQ people.

So back to the money. It’s being given to Bernie Sanders and AOC. Not the usual Democratic suspects. As a matter of fact, Schumer asked for Sphere tickets and he was turned down.

People are sick and tired of the usual suspect Democrats asking for money… To do WHAT? Bernie and AOC are in motion, better to fund their campaign.

But they’re not getting all the money. A huge chunk will go to a legal defense fund. If you’re a law firm threatened by Trump, if you’re anybody threatened by Trump, this money will be available to support your case, so you don’t have to cave to Trump.

Now these are not the kind of AI tracks I referenced above, pale imitations of what once was. No, each and every artist is working with AI to create something brand new that sounds like the past, but not exactly. Some acts went back to MusicGPT twenty times, refining their cuts. These are not retreads, no way.

Eno wanted to get in, do one of his atmospheric cuts, but the brass said no. They want every track to be a hit, like on an album of the seventies or eighties.

And since Eno said no, Bono was hesitant. But when he was told that U2 can open and close the Sphere show, he was in. And yes, Larry Mullen, Jr. will be a member of the band.

I don’t want to give away any more highlights. But I will say that all these acts are pissed that no one is standing up to the Orange man. Everyone knows politics is show business for ugly people, that D.C. can’t compete with Hollywood, it’s entertainment that has eyes and ears.

Oh, I forgot to mention that the Sphere show will be streamed live on Netflix. And co-hosted by Chris Rock and Dave Chappell. They’re going to introduce the video for the new Biggie Smalls track, that is also part of the project, the clip will be aired before the concert.

This superstar AI album, which at this point is untitled, and is referred to by insiders as SAIA, is a true breakthrough. Employing technology to go back to the future.

Yes, they’re taking the best elements of the past and creating something that points to tomorrow.

Lucian already made a deal with Altman and MusicGPT, he’s allowing all of Universal’s catalog to be scraped and supposedly Sony and Warner are in too.

This is truly a great white wonder. Something inconceivable.

But it’s real.

GET READY!