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And people everywhere -- gone more and more concern about cyber attacks these days that most of us still haven't been really hurt by one.
Yes there have been some denial of service attacks on banks and reports of both Chinese and -- -- hackers infiltrating software systems -- systems.
But how would you like it.
How much would you care.
If companies that you're invested -- have been targeted and would you -- pull your money out lawmakers are trying to force public companies to disclose to shareholders.
When the company is a victim of an attack or even just a potential attack but what kind of impact would that have on investors joining me.
Kyle Arrington founder and managing partner of parenting capital management and -- before we get into the cyber stuff let's just talk about the market's getting slaughtered in the last.
-- the summer rally now over.
Well you know -- is very interesting I mean I've been talking about.
A sell -- here in the marketplace because I think things have gotten ahead of themselves.
So I am actually not surprised in the in the Dow Jones selloff I think that there's actually -- more room to go here.
Based on looked at the macro trend I think with DD sluggish GDP growth.
Unemployment rate and nationally over seven and a half percent for a lengthy period of time as well as on the way to seventeen trillion in national debt.
Those factors are still there are now I think more than ever there in the marketplace.
Is -- stock pickers market place of get with a trusted advisor.
And figure out which companies you like in a market that I think you have to be proactively patient in.
And pick your spots entering into because that is as of today we saw a Dow Jones sell off very quickly and I can easily see it going down -- 151000 quickly as well.
-- well I think there's another side of that trade we'll have to see what happens start next week now let's get into the cyber stuff -- It currently that we already have laws on the books that would require companies to make.
A disclosure when he material event happens.
Why do we need a new law on the books to say -- and also.
A cyber attack have to disclose that to -- if a cyber attack -- material effect that a company's results again after disclose it anyway.
Why go -- step further well -- I think that it's important.
To have shareholders aware of -- material and and will leave the lawyers up to defining what material means.
Material affect on not a company.
-- a material effect would be something like someone hacks into Coca-Cola and finds the secret recipe.
And so should shareholders be aware of the fact that that recipe was stolen yes.
I think that material I don't think a material effect is.
-- system was broken into and a firewall prevented people.
From getting any information should that be disclosed automatically in an eight K no I don't think that.
There has to be some level of privacy to these companies.
I I am all for protecting shareholders but I think we really have to get into what's material and what's not material.
The rule of thumb I'd always thought that if some.
News event has had an effect of 10% change in the company's revenue or profits or stock price and that's -- material event some 10%.
But in this case.
-- hackers love getting attention.
My hand if we start requiring companies to put up a disclosure when -- -- really -- I'm gonna break and your place.
Aren't we basically giving them exactly what they want more publicity -- I agree with you a 100% I mean.
Every time something you know potentially happens -- there's a potential cyber attack do we I think we we we play right into exactly what they want which is just.
Extensive my attention and so -- I think again we have -- we have to really sit down because now you know this is an issue with technological advancement.
This is the downside of of of of technology expanding.
But we do I don't believe that we should be -- to have two disclose everything that yeah potentially may happen I'm sure they mean well but sometimes lawmakers and regulators.
They see headlines and they too much got to do something to cash in on -- thanks for being with us tonight.
That Al Harrington thank you.
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