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Founder's Story
Inside the Mind of Wall Street’s Father-Son Duo: What Most Investors Get Wrong | Ep. 239 with Ken and Connor Mahoney Founders of MahoneyGPS
00:15:28
Ken and Connor Mahoney, the father-son duo behind MahoneyGPS, share insights from over three decades on Wall Street—discussing everything from the AI boom and IPO cycles to crypto, generational investing differences, and why earnings always drive markets. Their approach blends timeless financial wisdom with a sharp eye on where the money is moving next.
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- [00:00]
Meditation Guide
Okay, close your eyes. Exhale. Feel your body relax. And let go of whatever you're carrying today.
- [00:08]
Contact Lens User
Well, I'm letting go of the worry that I wouldn't get my new contacts in time for this class. I got them delivered free for 1-800-contacts. You guys, they're so fast. Oh, sorry. Namaste.
- [00:21]
Meditation Guide
Hi, there.
- [00:22]
Ken Mahoney
Did you find everything okay?
- [00:23]
Contact Lens User
Yes, I did, because I found the exact same contacts as my eye doctor prescribes at 1-800-contacts. Here, give me that. Attention, shoppers. Did you know 1-800-contacts has 45 million contacts in stock?
- [00:37]
Mechanic
Okay, we checked the brakes. Everything looks good.
- [00:40]
Contact Lens User
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- [00:48]
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- [00:58]
Daniel
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- [01:00]
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- [01:32]
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- [02:06]
Daniel
Hey, everyone. Welcome back. So, I. I'm fired up right now because the markets, Wall Street, I mean, there's so much action. I was there last week in New York at the New York Stock Exchange. Always, what a great experience to just be in it. So that's why I'm excited for Ken and Connor Mahoney. And I know you all. I mean, 36 years combined experience or over 36 years on wall Street. You do a lot of things. You help advise, and you have a lot of amazing clients that you work with as well. And I can't wait to learn more about the Pulse. We were just talking about, you know, recent IPOs and everything, but I'd love to hear, you know, right now, if, if somebody asks you what are you looking at most when it comes to the markets, what would you tell them?
- [02:53]
Ken Mahoney
Well, I would say first of all, I'm glad you enjoyed your trip to New York Stock Exchange, Right corner abroad and Wall street, where capitalism thrives. And it's amazing. Companies come public there and then shareholders trade these things back and forth just again. I'm sure you felt the energy. It's awesome. Hey, we're this AI. We're probably in the second or third inning. You know, know, there's a lot of negativity about headlines, tariffs and all, but at the end of the day, there's so much money being spent. I think Amazon's going to spend $103 billion for AI and data centers. Microsoft 93 billion. The race is on to build faster and better. And look, we want to follow the flow. And one other thing, I'm sure Connor has some comments here too. If you think about 2020 and Covid and how much money went to diagnostic and medical devices. Right. And all this stuff, well, just fast forward five years from now instead of being health care, thank God Covid's out of here. Now. The huge amount of spend is in technology to keep up with one another.
- [03:48]
Connor Mahoney
I think what's really interesting is I'm looking a lot at different institutional positioning or, you know, people are actually starting to short up here, which I think it's, it adds more fuel to the fire, which, which is good. And basically looking at longer term positioning and options, looks like, you know, new highs are inbounds. It seems like the path of least resistance to touch, 6100 or so. And then we'll have some type of triple top and see if we get through there. But the way positioning is looking right now, looks like we could just squeeze into the last few weeks of June. The end of the quarter is my take.
- [04:23]
Daniel
So how do you see the ipo? We were just talking about the circle IPO that just happened. What do you, you know, it seemed like a lot of excitement. Pulse is good around, you know how people feel. Are there more potential IPOs coming? What can we expect there?
- [04:38]
Connor Mahoney
Yeah, I do think having core weave was a crazy ipo. I know it took a little while for us to get going, but as low as 40, up to like 160 in the matter of maybe a few weeks or a month. Then you had etor that one's done. All right. And then circle went pretty crazy. I think it was indicated at $30 a share. And then so much bidding for it went actually live at 60 and all the way up to like 130 something. So we're definitely one of those maybe a little frothier periods. I do notice that we're getting a lot of small caps starting to move. So maybe late cycle bull market. I still think longer term bull market, but shorter term, like, you know, we're near a, a little blow off top. We need some rest. I guess it's been kind of crazy.
- [05:22]
Daniel
So when you're looking at the markets, is there something that you're looking at to, in order for you to really evaluate is something worth it or not?
- [05:31]
Ken Mahoney
Yeah, it all comes back to earnings, my friend. It's always gonna come back to earnings. So, you know, first of all, there's a process of elimination too, Daniel, where we're not going near pharmaceutical companies. They have a big target on their back for the administration. We're not, you're not gonna find us in autos and airlines and some of these godforsaken retailers. You know, they say it's a stock market, but it's really market of stock. So we, the reason why we're in this AI lane is there's so much money being spent and those companies earnings, when they have stronger earnings, good things happen, right? They build, build up the, their balance sheet, they do buybacks, they raise their dividend, they buy the competition, they buy, you know, personnel and so forth. So, so many good things happen in that cycle when companies have really strong earnings. And again, we have such a strong tailwind because so many companies want to, you know, get their chips up and running, get their data centers up and running. And those companies are the picks and shovels of this, this huge AI boom. Well, they're the winners because they're going to great earnings and they're going to pay shareholders very well between stock dividends and buyback.
- [06:30]
Daniel
I was just listening to somebody talking about the future of like robotics and humanoids and you know, as AI and AI and robots kind of merge like physical robotics could be self driving cars, could be literally a robot that's with us. I think we've seen, you know, some companies talk about that. How do you, how do you see this in terms of, of not just AI being in the computers that we're using, but now moving into physical things?
- [06:57]
Connor Mahoney
I think it's actually, I mean, I think we could all agree it's a little Scary maybe, but I do think, you know there is going to be adoption of these technologies. There already is. I can't tell you one person that doesn't use like ChatGPT or Grok or some other service like that basically daily. And we were all a little skeptic of it at first but you do see the actual applications of it. So I just think there is some adoption. And we don't want these like Terminator. I've seen those Tesla robots, they're a little scary, but you never know. These could be very useful and practical in different ways as long as people are adopting to them and they're obviously under control or their safety guidelines along the way. But yeah, that certainly is future. And we know companies are spending like crazy to boost their data centers and AI infrastructure takes a lot of computing power. And like Ken said, do you think it's early innings still for all these different AI applications? Most likely.
- [07:53]
Daniel
When you look at people that trade of different age groups or different ages, do you find that they're looking so you know, I know Connor, you're in your 20s, Ken, you look like you're in your 40s. So when you're, when you're looking at these different age groups, are they looking at things differently or are they asking you different questions?
- [08:15]
Ken Mahoney
Yeah, I think because of social media and so many resources, a lot of really good questions. I know for the older folks, so to speak, which I am one of them by the way. Danielle knows. But you know they say okay, now retire, I'm going to go to dividend paying stocks. We don't like that. I mean a lot of dividend paying stocks you get your 5 or 6% and many times these stocks that they cut the dividend, the stock could get cut in half. So the risk reward to us doesn't really look so great for a lot of people who are in their 60s or so they're looking for, for dividends. In fact we'd rather just play, you know, their playbook, go with those picks and shovels, the Apple, the Microsoft and the video. Have those names grow in your portfolio, keep up with cost inflation and skim off a little bit to create some income. But again it's a wholesale change, 180 degree change we see as opposed to buying dividend checks, you know, dividend stocks when you retire. Instead we still like to say growth, growth, growth even through retirement. Especially if you live into your 90s. Right? Right guys, the three is where you live into our 90s. We definitely want that inflation hedge and stocks and Real estate are really the two best areas to protect against inflation.
- [09:17]
Daniel
How about you Connor? Anything from you know, when you're, what do people in their 20s think about the market?
- [09:23]
Connor Mahoney
I hope they're getting involved as soon as possible. I think the big thing to have is through work is passively investing in you know, 401k. It's like, you know, it comes out of your paycheck. You don't really have to think too much. Hopefully you just check the large cap growth or growth allocation. All stocks we, we talk to people about that all the time. Even in, even into your 30s or 40s. That's not money you're going to use until you're probably at least 60 or 65 or older. I just hope that people are investing to some degree in stocks primarily. And yeah, for more aggressive people maybe they have a different account they can trade and stuff and look at Bitcoin or some of those more aggressive assets. But I just think a good place you just have to start. You just have to have something let that compounding start young. And that's a huge part of the puzzle I think.
- [10:15]
Ken Mahoney
Yeah. Albert Einstein, a pretty smart guy, he said the eighth wonder of the world in average listen is compound or compound interest. It shows, you know, stacking returns on top of returns and you know, sometimes I'll get somebody retired age 60, they're like I have a million dollars retiring account. I can't believe it. But again it was years of putting away pre tax dollar cost averaging towards growth. But again I love that Albert Einstein who was you know, a scientist, a physicist, not really an investment person but he did say the eighth one of the world is compound interest.
- [10:43]
Daniel
How are you feeling about crypto? And you know I have Bitcoin ETF personally so you know I'm always looking at are there more ETFs coming? I was just seeing, I believe the Vatican might be buying like a billion. I don't know if that's even true. Somebody something I was reading but it's a new poll.
- [11:01]
Ken Mahoney
Maybe he's a, he's a trader there too so maybe.
- [11:04]
Daniel
But I know there's like a lot of people, a lot of traditional investment companies, a lot of companies are buying in bitcoin obviously you know, reaching those all time highs again I think it's.
- [11:15]
Connor Mahoney
It'S definitely, it's a good trading vehicle for sure. I think Ibit, there's BitX which is leveraged. There's so many GBTC. See there's so many different companies basically getting involved at this point. I think it's come to the realization that not everyone really knows what Bitcoin is or does. We just know it's an asset class that is moving in price.
- [11:39]
Meditation Guide
So, okay, close your eyes. Exhale. Feel your body relax. And let go of whatever you're carrying today.
- [11:47]
Contact Lens User
Well, I'm letting go of the worry that I wouldn't get my new contacts in my in time for this class. I got them delivered free from 1-800-contacts. You guys, they're so fast. Oh, sorry. Namaste.
- [12:00]
Meditation Guide
Hi there.
- [12:01]
Ken Mahoney
Did you find everything okay?
- [12:02]
Contact Lens User
Yes, I did, because I found the exact same contacts as my eye doctor prescribes F1,800 contacts. Here, give me that. Attention shoppers. Did you know 1,800 contacts has 45 million contacts in stock?
- [12:16]
Mechanic
Okay, we checked the brakes. Everything looks good.
- [12:19]
Contact Lens User
You know, speaking of checking, did you know 1,800contacts triple checks every order? Yeah. They make sure you get exactly what you need when you need it.
- [12:27]
1-800-Contacts Advertiser
1-800-Contacts. So good, so fast, so accurate. You'll want to tell everyone, too. Download the app or visit 1-800-contacts.com today and save on your first order.
- [12:37]
Daniel
1-800-Contacts.
- [12:39]
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- [13:10]
Mechanic
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- [13:28]
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- [13:41]
Connor Mahoney
Oh, it's a. It's a good trading vehicle, I think for people. It's hard to say. The actual, you know, par value right, is people say, oh, we can trade Bitcoin. It just was 101,000 two days ago and now it's 110. So it's extremely volatile vehicle. I do think it's pretty speculative asset. But then again, like I said, it's a good trading vehicle. And more and more institutions seem to be getting involved, which legitimizes it further. I think there's some higher targets probably this year. 120, 125, something like that. You know, if you're looking at like fibs and ibit option flows and different things that are out there. It seems like again I think I talk about paths of least resistances. Bitcoin is probably higher in the next, you know, few months, six months.
- [14:27]
Daniel
I've heard some people say it could hit a million dollars at some point.
- [14:30]
Connor Mahoney
Yeah, I do think for some people they see it as like their path to just like a self fulfilling prophecy in trading at times is we all have this target in mind. We're going to all buy it up to these targets. And bitcoin, like I said, is no earnings, it has no real fundamentals. It's kind of like a psychology training vehicle. So. Trading vehicle. Yeah.
- [14:53]
Ken Mahoney
And that's where the problem I have with the one let's put like 5% of portfolio. Fine. But it's like I like business models like Microsoft, right. They're into, they own LinkedIn, they have all the gaming under Xbox and Windows this and Windows that. I mean that's a real business. Then you know the problem here is, here's the problem I have with it. Tell me one day I could take my wallet, I'm not telling my wallet, my coin wallet and walk into Best Buy or walk into Barnes and Noble and use it. Then I'm like, okay, we have something. So I'm still kind of in a show me state. I'm older, that I'm Generation X. That's why you Gen Z folks have a different take on this. I like businesses with cash flow that are more predictable. I know this can go up in value. So some clients, I guess you could recommend a few percent of anyone's holdings, I guess diversify into it. But at the end of the day I can't use the currency and I'm told the reason why we buy it is that someone else buys at a higher price than you. I'm told the reason why to buy it is that you could transfer your money around. Well I could do that with Zelle. I could do a PayPal, I could do that, a whole bunch of other services. So until I get to, to me anyway until I get to use it to buy something, why actually call it like a legit currency or legit.
- [16:01]
Daniel
Right.
- [16:02]
Connor Mahoney
Seems like, you know, people see it as inflation hedge, maybe a digital inflation hedge alongside like gold as being a physical one or real estate or stocks in general. So it's, it's an interesting phenomenon. It's, it's pretty incredible to see where it is.
- [16:18]
Daniel
Yeah, I like how you put that, Connor. When I put money into crypto I do just hope that it goes up. It is a self fulfilling prophecy then maybe something that has a huge amount of uses yet. When it comes to the dollar though, I'm curious about, I see, I think the dollar, the euro, the dollar was down. We were just traveling somewhere and I noticed my money didn't go as far as it did last year, sadly. But what is there something that we could expect or hope to see in maybe this year when it comes to the dollar? And then on top of that there's a lot of people talking and there's a lot of rumbles about things replacing the dollar and such. How do you feel about that as well?
- [17:01]
Ken Mahoney
Okay, so I'll jump on that. So as far as the dollar, we still think it's going to be the world currency. There was some nicks in April. We had the liberation day which turned into a real mess and then but you know, and dollar went down and gold went higher and cryptos went higher and you know, had it. But now you start seeing the homostasis again. You start seeing a balance and again at the end of the day I still see the US dollar being the world currency now. Doesn't mean it won't have its bumps and bruises. But if you look at Europe, seriously I don't get it. I mean they, they over regulate. There's hardly any innovation there. I just, I just don't get it. I don't know how the euro would be that Japanese. They have their own issues.
- [17:38]
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- [17:56]
Mechanic
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- [18:12]
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- [18:23]
Ken Mahoney
But up.
- [18:27]
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- [18:56]
Ken Mahoney
You know, maybe we're the prettiest and the ugliest contest, so to speak, but it's good enough because again, America, with all the ingenuity that takes place, yes, we're trying to get better trades. Yes, there's a lot of uncertainty, but I still think the go to currency will continue to be the dump, you.
- [19:13]
Daniel
Know, further in because I have a lot of questions. I know you have an incredible newsletter that I read every day. The good thing about your newsletter is it's funny, it's informative, it's fun to read, it's easy to read, which is something, you know, I enjoy. I can only read something I enjoy because I'm, you know, if not, I'm like the, you know, adhd. But if people want to get in touch with you, though, they want to read your newsletter and everything, how can they do so?
- [19:40]
Ken Mahoney
Yeah, so it's Mahoney GPS.comm a h o n e y g p s dot com right there. Our newsletter. Sign up for it. We have a lot of ideas, as you can tell, and bounce off a lot of ideas. We just love it. We live it and breathe this stuff. And certainly it's an amazing. America is amazing to be able to have this opportunity to invest in the best companies not in the US but in the world. There's only one Apple, only one Nvidia, one Microsoft. I could go on and on and on. Truly innovative. And that's, that's the spirit of America in the best companies in the world. And we have access to it 24. 7. Click, click, click. You could buy stocks all day long. It is such an amazing opportunity that we have.
- [20:18]
Daniel
Well, this has been great. Ken and Connor, father and son duo. Not too many in the finance space that we've gotten to talk to at least. So it's always great to understand, you know, the different dynamics and age groups, everything that you're seeing that you're working on. I know you're talking in like tons of media all the time, but I just want to say thank you so much for joining us today.
- [20:38]
Ken Mahoney
Hey, thanks for having us, Daniel. Great questions and make us kind of think through it and hope your viewers enjoy some of the commentary that we have.
- [20:51]
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- [21:09]
Mechanic
Don'T just get deals on the drinks, you get deals on McDonald's drinks. So when you're breaking a sweat, embrace the chill without breaking the bank. And when your crew is running on empty, keep your wallet full while refreshing the squad.
- [21:25]
1-800-Contacts Advertiser
Get more than you expect on your favorite medium drinks, like frozen Fantablue, raspberry iced coffee or lemonade. Now at just $2.29. Price of participation may vary. Cannot be combined with any other offer.