Supreme Court Takes on Your 401(k): The Intel Private Funds Case Explained

SPEAKER_1 (0:01)

This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein.

Justin Klein (0:16)

Good afternoon, fellow investors, and welcome back to InvestTalk. This is our Friday, October 16th, 2026 edition of InvestTalk. We're excited for this hour to close the week. I know we didn't have a few shows early this week. Like I said yesterday, there were some pickups in our production and traveling, and life happens. So I had to take a few days off, but we are back, so don't worry, we'll be here consistently. And we are here to answer your finance and investment questions. We're here to, as usual, help you take that next step in your financial journey so that you can capitalize on opportunities and avoid the risks, the pitfalls in today's market. That's what you saw today. If you were positioned accordingly, you probably have an okay day. If you're positioned poorly, you probably saw a lot of red in the screen. So it's a very, very bifurcated market.

So we'll talk about that a little bit more, but this is an example of why you need to stay on top of these things and adjust your portfolio so that you can outperform. So you can take the appropriate amount of risk and take smart risk, not just any type of risk, but smart risk, especially in this market where geopolitics are playing a huge factor here, as well as how that's feeding into the cost of capital and then how that feeds into markets, both bond markets as well as equity markets. So that's what we're going to look at today and much, much more. Once again, we're going to answer your finance and investment questions.

So we are here for all of it during the next hour. But a quick heads up, our all new in person InvestTalk Retirement Summit is just eight days away. This is a complimentary event. Will happen in Irvine, California on Saturday, October 24th. That is one week from tomorrow. You are invited if you're in the area, if you live in the area, if you plan to be in the area next weekend, it's going to be a great event. We have some experts covering tax strategy, estate planning, real estate, Luke's going to cover investment strategy, I'm going to cover broader financial planning and how it's all put together. We'll do a Q&A session for all of us. So anything that's on your mind, you want to ask about, we can cover that.

And once again, it's next weekend. It's free of charge, but seating is limited. We have a handful of spots left. I just talked to Shelby, our marketing director earlier today, and she gave me an updated number. So seating is very limited. If you're going to register, you want to do that sooner rather than later, before you are waitlisted. Because once it fills up, we're going to start a waitlist. So you can register now over at kppfinancial.com or investtalk.com. So head over there now. Now in just a bit, we'll talk about today's Mark Performance. We'll run down the show topics, but first let's tackle this caller question now.

Paul (3:12)

Hi Luke, this is Paul from San Diego, and I'm holding currently GE Aerospace, and I was going to continue to hold it for the long term. I just wanted to see what you thought about that. Okay, thanks a lot.

Justin Klein (3:27)

Looking at GE Aerospace, this is a name that has done fairly well. Let me go zoom out to a weekly chart here.

Yeah, it's low back in 2022 was around $40 per share. Now we're at $313 per share. Why is that? Because earnings have gradually gone up. You had, let's see, Q3 of last year made $1.13, Q2 of this year made $1.86.

Excuse me, and it continues to go up within a revenue basis and an earnings basis. So the growth is very good. Earnings per share growth the year of a year expected this year to be 21%.

It's been kind of the mid-20s for the last few quarters, but it is a deceleration from 81% in Q1 of last year. So there's some growth deceleration. It's trading at a pretty hefty multiple, 36 times forward-looking earnings. Enterprise value even around 27 That's near the high end of its range, even though it's pulled back. So to me, it's a bit expensive. I don't love it here at these levels. The momentum has certainly slowed. And so I would be a seller of the name. I do think the business is good, but it's just too expensive based on its growth trajectory, which is certainly slowing. So I'm passing on GE. Now, we had a great show yesterday. We looked into this story. Are REITs a buy or sell when interest rates rise? Cover that topic as well as answer some of the questions on Texas Pacific land and much, much more. And if you happen to miss it, go check it out. Best way to get every show is to follow InvestTalk wherever you get your podcast. Now we have a lot of ground to cover over the next 45 minutes or so and time for many will get to all of it. Our main focus point is about a Supreme Court ruling that could have a major impact on your 401k and that is whether private equity, private credit, hedge funds, these private investments can be put inside a 401k or should be put inside a 401k. The outcome could reshape how millions of Americans' retirement assets are managed and what investment options you can access. So we're going to dig into that story. In addition, we're going to touch on other topics. So one is gold. Gold demand from central banks in September was at the highest level in almost two years.