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- [00:00]
Buck Sexton
This is an iHeart podcast. Guaranteed Human Sometimes we all need to slow down and reconnect with what matters most. Life can feel overwhelming, but encouragement and guidance are closer than you think. At InTouch.org, you'll find biblical teaching, daily devotionals and timeless sermons from Dr. Charles Stanley. These resources are designed to strengthen your faith, renew your hope, and give you confidence for life. If you're seeking peace, strength, or simply a reminder of God's presence, visit intouch.org today. You'll be glad you did Friday Kick.
- [00:34]
Lindsey Vaughan
Off the Winter Olympics in style with the opening ceremony from Italy featuring a special performance by Mariah Carey. Celebrate the greatest athletes from around the globe as they come together to go for gold. Lindsey Vaughan Sensational the opening ceremony of the Winter Olympics.
- [00:54]
Buck Sexton
Ilia Malini Redefining this sport Friday at.
- [00:58]
Lindsey Vaughan
8 Eastern, 7 Central on NBC.
- [01:00]
Buck Sexton
And Peacock buying gold isn't a get rich quick tactic. It's a diversification. That's part of the reason I'm buying more gold from Birch Gold Group. There are forces pushing the dollar lower and gold higher, which is why Birch Gold believes every American should own physical gold. So until February 1st, if you're a first time gold buyer, Birch Gold is offering a rebate of up to $10,000 on qualifying purchases. To claim eligibility and start the process, just text my name Buck to 989-898. Claim your eligibility today.
- [01:31]
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- [02:05]
Team 47 Announcer
Team 47 with clay and Buck starts now.
- [02:12]
Clay Travis
These so called Trump accounts. I actually think this is a great idea Buck. And we talk a lot about financial literacy on this program and we can get into this somewhat during the course of the program. So few kids out there have financial knowledge or understand the concept of compound interest. That is if you start with a thousand dollars invested when you're really young and you just allow that money to continue to grow, it is transformative by the time you get to 20 or 30 years old.
- [02:43]
Buck Sexton
I'm glad you're admitting this because I believe you were giving me a bah humbug and making fun of me for being the uncle who gives his nieces and nephews who are toddlers or babies instead of useless, you know, like butterfly socks or something. I give them money in long term, either, you know, stock accounts or for the purposes of college because that money grows.
- [03:10]
Clay Travis
Clay, that is, that is very, very good of you. I would suggest maybe Uncle Buck could also give a toy to a kid in addition to a. I don't think it's one or the other. I think. Let's not get crazy.
- [03:23]
Buck Sexton
Let's not get crazy.
- [03:23]
Clay Travis
I think you probably could get a, you know, Tonka truck for a kid and also give him some, some help on his future college. But I do think this compound interest idea is one of the least understood aspects and what it does is and we'll have some fun with this because I do think it's important, but it teaches you the values and power of individual responsibility from a financial perspective and playing the long game as opposed to constantly trying to scramble in the short game.
- [03:52]
Buck Sexton
Sometimes we all need to slow down and reconnect with what really matters most. Life moves quickly and between responsibilities, stress and distractions, it's easy to lose sight of the things that bring true meaning. That's where intouch.org comes in. It's a place filled with biblical teaching, devotionals and encouragement that speaks directly to your heart. Dr. Charles Stanley Sermons are timeless, offering wisdom that applies to everyday challenges as well as the deeper questions of faith. The resources there are designed to help you live with confidence, strengthen your relationship with God, and experience his presence in a practical way. On the site, you'll find daily devotionals to keep you grounded, articles that inspire reflection and tools that guide you toward a life of peace and purpose. Whether you're searching for hope, strength or simply a reminder that you're not alone, intouch.org is there for you. Make it part of your routine. Visit today and discover the peace, guidance and encouragement you've been looking for.
- [04:46]
Lindsey Vaughan
Friday Kick off the Winter Olympics in style with the opening ceremony from Italy. Featuring a special performance by Mariah Carey. Celebrate the greatest athletes from around the globe as they come together to go for gold.
- [05:03]
Joe Lavornia
Sensational.
- [05:04]
Lindsey Vaughan
The opening ceremony of the Winter Olympics.
- [05:07]
Joe Lavornia
Ilya Malin Redefining the Sport Friday at.
- [05:11]
Lindsey Vaughan
8 Eastern, 7 Central on NBC and.
- [05:14]
Buck Sexton
Peacock buying gold isn't a get rich quick tactic. It's a diversification play the long ball strategy. Here's the facts. Gold is up over 60% in the last year. Yes, but it's up over 700% in the last 20 years. That's part of the reason I'm buying more gold from Birch Gold Group. There are forces pushing the dollar lower and gold higher, which is why Birchgold believes every American should own physical gold. So until February 1st, if you're a first time gold buyer, Birch Gold is offering a rebate of up to $10,000 on qualifying purchases. To claim eligibility and start the process, just text my name Buck to 9898 98. Birch Gold can help you roll an existing IRA or 401K into an IRA in gold and you're still eligible for a rebate of up to $10,000. Text my name Buck to 989898 Claim your eligibility today. Again, text Buck to 989898 One more time, text my name Buck to 989898 claim your eligibility today.
- [06:15]
Team 47 Announcer
Support for the show comes from Public, the investing platform for those who take it seriously. On Public, you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI it all start with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are like ETFs with infinite possibilities, completely customizable and based on your thesis, not someone else's. Go to public.com podcast and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com podcast paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors llc, SEC Registered Advisor. Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available@public.com disclosures. You're listening to Team 47 with Clay and Buck.
- [07:24]
Buck Sexton
We are joined now by a very, very special guest, Joe Lavornia, Counselor to the U.S. treasury Secretary Scott Besant. A lot of you will know him from his time as a senior economist for a big Wall street bank on CNBC and other places. Joe, welcome to the program.
- [07:41]
Joe Lavornia
Thank you. Very happy to be on with you.
- [07:44]
Buck Sexton
All right, we're talking Trump Accounts. Big event today in dc. Lot of talk about economy stuff from the President and from Secretary Besant. Let's start with Trump Accounts though. What's the idea here, why does it matter so much to this administration and to the American people?
- [08:02]
Joe Lavornia
Well, it is a down payment on the future. It is a way to encourage newborns and those children that will be born over the next several years under the Trump administration to be able to partake in the capitalist system where the US has been an engine of growth and prosperity. And this is a way, a very novel approach to get families in the game of investing, building a nest egg, creating wealth, creating financial stability. And the Trump administration is going to start that with seed capital of $1,000, which then can go upwards of another 5,000. That could come through a combination of either an employer, a family member, a guardian, parent, to really build wealth and to get, over time, young boys and girls understanding the powers of compound interest and how an investment today can pay huge dividends longer term.
- [09:01]
Clay Travis
Okay. This is so important. I think compound interest, basic financial literacy. And this is, Clay, appreciate you coming on the program is something that kids really desperately need to understand. And by the way, I think also a lot of adults when you talk about compound interest. So let's say that someone has an account starting at birth, and, and they basically are just, let's say it's s and P500 index funds on average. What does the compound value of that look like? And over time, what kind of dollars are we discussing for people out there who don't really comprehend this?
- [09:38]
Joe Lavornia
And Clay, I want to also, I should add that Secretary Bessens highlighted that nearly 40% of U.S. households have no direct equity exposure. This is a way really to make Americans part of the capitalist system. It's an inclusive way to build wealth and to create financial security. Regarding the compound question, if you put the government gives $1,000 in 2026, then let's say that through a combination of either employment or somebody making the maximum contribution after the, you contribute 5,000 additional every year for the next, the next 18 years. Based on historical equity returns of roughly 10%, that money, when you do the math, could be worth slightly more than $300,000. Leave it. In another 10 years, the historical returns again, with a maximum contribution of 5,000 per year, that money could be worth almost 1.1 million. So the power of compounding is remarkable. And, and people are going to intuitively, innately understand financial literacy when they go to their Trump account and they see, wow, look at how this thing is increasing in value. And I add more, I could make more. I mean, it's savings in real time, and I think it's going to be a great tool that people are going to realize we need to invest in the future and they're going to probably leave their money in there and they're going to then reap the benefits from being invested in all these wonderful companies that create a lot of high paying jobs and investing in and helping make the US Economy and continue to keep the US Economy the best and brightest in the world.
- [11:19]
Clay Travis
The easiest way to understand this that I always try to explain to my kids and everybody out there, I would encourage to do your research on this. Basically, if you just buy s and P500 index funds historically and leave them in there, every 10 years your money doubles. So you start thinking about every 10 years a doubling and you start looking at 20, 30, 40, 50, 50 years of that. That's not even talking about putting more money in as you are, which obviously makes it even better, but every 10 years doubling. I just don't think most Americans really understand the value of starting early and continuing to pile in.
- [11:56]
Joe Lavornia
Yes, that's right. In fact, Clay, I'd say it's even better than that. It's the simple rule this to your listeners, it's the rule of 72. You know, if essentially if you have 10% equity return, your money actually doubles every, every, every seven years. If it's a 7% return, then it's 10 years. So the numbers are even better if you have historical returns approaching 10% than what you even suggest. But you're exactly right, that's just an initial investment. You get those wonders of compounding. But that's why we're hopeful, Clay, we know today President Trump announced all these wonderful US Companies across all different sorts of industries now are going to partake in the Trump accounts. And because the thing is that employers can contribute up to 2,500 per annum into a Trump account and that's not going to count as employee income. So the ability to actually to add to it to get those big, big returns is there. I think that's just a great way the program was designed.
- [13:00]
Buck Sexton
Speaking to Joe lavornia, counselor to U.S. treasury Secretary Scott B. Besant, a guy with decades as a very well known Wall street economist. And Joe, to that end, I want to ask you about something that's going to matter a lot to everybody listening day to day. It's also going to matter a lot to this administration and in the upcoming midterm elections has to do with affordability. Trump spoke about this recently in Iowa. This is cut 8. I wanted to have you dive into this, but first wanted to Hear from the president, play eight guys.
- [13:30]
Joe Lavornia
They came up, you know, it's a word that they came up with, affordability. Every time you hear the word, remember they're the ones that caused the problem. And the first time you heard about it was like a few months ago. This election is all about affordability. Well, they're the ones that caused the problem, but nobody knows that. You know, people forget.
- [13:50]
Buck Sexton
So now, Joe, how can this administration, Clay and I have talked many times about, yes, you look at inflation, previous administration, worst inflation, 40 years, that's, that's established. How do we bring this situation to a best possible outcome this year for the American people and certainly for the administration, for the purposes of the referendum that's coming up in the midterm elections.
- [14:15]
Joe Lavornia
Much of it, Clay, has been done through the one big beautiful bill or the Working Families Tax act, which it's also known as. And what I mean by that is that bill is encouraging significant business investment and building factories and expensing capex. We've already seen the capex come back in full force. This is helping lift productivity growth, which is output per hour. And that has also been galvanized through a lot of business friendly deregulation where companies can operate more efficiently. So you're seeing these big productivity gains. Why does that matter? Productivity gains matter because rising productivity is the lifeblood of rising living standards. When companies can produce more with their existing workforce, they can pay those workers more. So what the Trump administration's policies are going to do is they're going to allow people to take home more pay after tax. Take home pay will be going up. And because the economy is investing in the future, it could produce more, which means prices could come down. So you have is a disinflationary boom, strong growth led by productivity and prices falling because the economy's productive capacity is increasing. Think of it this way. Energy, the drill baby drill, the opening of federal lands, the easing of permitting and things of that sort to invest in energy production. What's that doing? It's increasing output, but at the same time it's lowering the energy cost. Take that and multiply it across the economy. That's how you basically get affordability to massively improve, is you're allowing people to keep more of what they have and you're giving them the tools to produce more so they get paid more and that's higher living standards.
- [15:54]
Clay Travis
This is a big picture question for you. You've been involved in finance for a very long time and we're talking to Joe Lavornia. When you look, I was reading recently, Amazon went public with an initial market capitalization of around $500 million. And then it has risen up to multiple trillions of dollars, which meant if you bought, you know, $1,000 in Amazon stock when it hit public markets, you've made millions and millions of dollars. Now there's talk about SpaceX. I'm sure you've seen potentially going public at a valuation of $1.5 trillion, which means a lot of the value created in that company will never have been accessible to so called average investors. The number of public companies is declining overall. Are you concerned at all about the way that the public markets are kind of being skipped and all of the value is being created now in private marketplaces, which doesn't give the average Joe investor the same access to roaring growth marketplace companies as might have existed back in the 90s or before.
- [17:01]
Joe Lavornia
I understand your point about, about public versus private markets and I think that reflects the fact that, you know, under unfortunately many Democrat administrations, you had significant overregulation. So capital immediately went to the private market instead of the public market. But what we know is over the past year we've had tremendous growth in the stock market. The returns have beat most money managers because US companies, many of which I don't need to name the names, but you know, that have done phenomenally well. They'll continue to do well. And as the administration tries to encourage private capital to come in and to innovate and create, I'm pretty confident, Clay, that we're going to see the, the US Stock market continue to perform well. It's is what we call the high beta on the US Economy. And President Trump knows how to get growth moving. And you know, I'm an optimist, so I'm not particularly worried about that. But as we have less regulation, you might see these public markets, and I think rightly so, improve. You're going to see more merger activity, you know, businesses back. As the President says, there's tremendous investment coming in the US and the US is indeed the hottest economy in the world. I mean, we've been growing almost 5% the last three quarters. I mean, that's incredible. And therefore the public markets are going to benefit from that. And by default, the people who are investing in these Trump accounts are going to benefit as well.
- [18:24]
Buck Sexton
Hey Joe, it's Buck. One more for you here putting on your macro economist hat for a second and maybe your forecaster Nostradamus side of things, the AI boom that we're in right now in terms of all the money that's going toward this stuff. Are you a believer in sort of the Elon model of this stuff is all real, it's going to change the world we live in and the productivity gains are going to be stratospheric or do you have concerns about a pullback because we might be a little cart before the horse on this stuff?
- [18:55]
Joe Lavornia
I mean, look, you have a huge equity boom. I mean, you've had a 45% or 40 something percent increase off of the April lows. It's one of the biggest recoveries post Liberation Day we've ever had following a 15% stock drawdown. And the markets are understandably optimistic about the future that the President has laid forth. That's not to say there won't be corrections along the way. But I think we have to look at the long term picture and the fact that the US Market is so innovative, so dynamic and US Companies are set to thrive. The President has set the field for those companies to thrive. And he's got people in leadership positions such as the Secretary. They're going to make sure that private capital is accessed in the most efficient way. And the AI story is for real. I think it's very important. We're certainly seeing the productivity data and you know, is there, could there be, you know, some spending that needs to be cut back here and there? Of course, but that's, you know, that's the nature of the cycle. But I think generally speaking, you know, the optimism that we're seeing in markets is well placed Buck, because you're seeing in the GDP data, you're seeing in strong capex, you're going to see it more on the investment side, especially for factories because that expensing is only going to last three years. So that's going to see, you're going to see a big boom there and I do think you are because inflation will continue to move down, you will see interest rates come down. The Fed should be lowering rates further. That's going to use affordability. It's going to make home buying more accessible to folks. And it's all, to me, it's all good news. Maybe I'm too optimistic, but President Trump has had a, perhaps a powerful influence on that. I never want to sell the US Economy short.
- [20:32]
Clay Travis
Oh, I think the economy is going to be flying and firing on all cylinders. And like you just said, we're over 5% for the fourth quarter quarter. And man, if we could get 5% growth in 2026, it would be transformative on so many different levels. Joe, we appreciate the time. Thanks for coming on with us.
- [20:49]
Joe Lavornia
Thanks guys. Appreciate being on.
- [20:51]
Buck Sexton
Sometimes we all need to slow down and reconnect with what matters most. Life can feel overwhelming, but encouragement and guidance are closer than you think. @intouch.org you'll find biblical teaching, daily devotionals, and timeless sermons from Dr. Charles Stanley. These resources are designed to strengthen your faith, renew your hope, and give you confidence for life. If you're seeking peace, strength, or simply a reminder of God's presence, visit intouch.org today. You'll be glad you did Want to score?
- [21:19]
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- [21:35]
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- [21:57]
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- [22:04]
Joe Lavornia
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- [22:19]
Buck Sexton
This is an I Heart podcast.
- [22:21]
Joe Lavornia
Guaranteed human.