In today's episode, Kip takes a deep dive into current market trends and explores why he stands firmly as a contrarian investor. We'll unpack Tesla's recent 10% stock surge, and fresh all time highs from the mega-cap tech companies like Microsoft, Apple, and Amazon, and all time closing highs from our major indexes. Tune into today's VRA Investing Podcast to learn more!

Don’t look back. The market is closed. Good Tuesday afternoon, everyone. Kip Herriage here with the daily VRA investing podcast. Hope you had a great day today. Got a lot of fun things to talk about today. I think some important things as well.

Tesla boom happening today. Up 10% on the day 230 now on Tesla. Talked about that a little bit. Just announced some pretty remarkable stats if you watch the mainstream media, which I just watched Bloomberg before this podcast, Bloomberg, there’s auto analysts. All they had to say about Tesla were negatives. That’s all they had to say because of deliveries. Even though they beat estimates, it was still 5% lower than last year. Back to back quarters of declined deliveries. That’s the auto side.

But they completely ignored the $60 billion increase in market cap today. Huge short interest in the stock, by the way, not let people talk about that. Don’t pay any attention to skating where the puck is going. I want to get into some detail on that because we’ve been patting the table on this stock as a Vra ten bagger. I think if you think the stock has run too far, too fast and it’s just too expensive, you’re wrong. I’m sorry not to sound too arrogant or cocky here, because that doesn’t work. The markets will make you humble, if you’re not already. But hear me on this.

[00:01:25]:
Tesla 230 is dirt cheap. It’s dirt cheap skate where the puck is going. I’m going to get into a little more on this because it’s one of my favorite topics. Of course, I own the stocks. It’s $18 a share. And we’ve loved the heritage family, has loved Elon Musk for a long time, even more so now that he’s one of our true defenders of free speech in this country with what he did with his $44 billion acquisition of Twitter, now, of course, known as x. So we’ll get into that a little bit. And the generals Talon just had our pre podcast meeting.

The generals. The generals. Even though we’ve had pretty horrible eternals over the last, I don’t know what month or two. Here we go again. A repeating pattern we’re seeing happen when the eternals get bad. The generals start to lead. Remember last year, the magnificent seven? They were the only stocks going up, right? Four hundred ninety three s, five hundred stocks were going down, but seven were going up. And everyone said that, can’t continue.

Can’t continue. And it just did. And then the market broadened out. We have another repeating pattern today. All time highs in Microsoft, Apple, and Amazon. The general is charging ahead. Listen to this, listen to this. Today marked the 22nd day of 2024.

That Nasdaq hit an all time high, 22 days. SB 500 has 32 days of all time highs in 2024. Yet the fear and greed index is at 50, which had just got out of fear territory. It’s now in neutral territory. This negative, pervasively negative investor sentiment. This is heaven for contrarians. If you’re a true contrarian, you are salivating when you see this. You’re absolutely salivating.

[00:03:08]:
You’re backing up the truck and buying. There is no bigger buy signal than negative investor sentiment with the markets at all time highs putting these kind of readings. Oh, my goodness. Wow. I think people had. People just don’t. I don’t understand why people don’t make it more of an effort to be contrarians. And I tell you, I know a lot of smart people and you see them in print.

I’m talking about when it comes to investing, at least they sound very smart and they go on tv and they have their concerns. And the perma bears always sound so smart, don’t they? And yet they’re always wrong because they don’t understand two things. Number one, if you’re wrong about direction of the market, change your mind. Right? Change your mind. It’s okay. It’s okay to admit you’re wrong. Trend followers never have to worry about this. Trend followers can be wrong for a short period of time.

The trend followers are. If you’re a true trend follower, you are never short for an extended period of time. Also, if you’re not a contrarian, put some time and work into understanding the mindset of a contrarian. I’m going to talk about that more in a moment as well. Some really important things that I believe. I’m a lifelong contrarian. It’s just something that’s always come easy to me. Both of my mentors were contrarians.

[00:04:23]:
It was kind of ingrained into me. I was kind of raised that way to everyone. If everyone’s going left, go right again. That’s just how I’m made. A lot of us are, and I’m sure I’m speaking to, I would imagine as close to 100% of you as possible are contrarians. Right. That’s probably one of the reasons you’re with us, because you see things the way we do, things that make no sense whatsoever force us to go in the other direction. This is why we’re not impacted by the propaganda machines.

This is why the indoctrination attempts that they use don’t work on us. This is why advertising. Advertising doesn’t work on me. I would imagine it doesn’t work on most of you either. I’m very loyal to a brand. I’m very a loyal person when it comes to staying with somebody, be it friendships or be with brands or companies, very loyal. But marketing, advertising doesn’t work. We are not susceptible to that.

And unfortunately, that does not describe most of the public. We have a country of sheep. We have a planet of sheep. Now, I think that is changing. Matter of fact, I’m sure of it, because the country, really, the planet is being red pilled. This is one of our five big bride mega trends. We wrote the book almost two years ago now in the big bride because we saw this as that important of a long term trend. By the way, all five of those megatrends are taking place.

So, so far so good. Again, staying humble. But we did nail these mega trends in the book and being red pilled is one of them. So I think the public is getting better. The public is waking up. I want to talk about it. Again, I don’t want to get too far off topic here, because you got other things to talk about. But again, just incredible start to the year.

[00:06:07]:
Again, we have one of the best, first, Tyler covered this yesterday, had one of the first, first, one of the best first half of the year ever. We had this, the best first half of the year for presidential election year in 50 years. All right. So a lot of things are going right. Seasonality is working, by the way. Seasonality remains bullish. Seasonality is extraordinarily bullish. For another, I think it’s eight days, another eight trading days from now, according to our friends, the stock Traders Almanac.

And again, that doesn’t mean the markets have to decline after the middle of July, whatever, but seasonality dictates. That’s typically what happens in an election year. I think this year is very different. We’re on record of saying it’s very different. And look, today Jay Powell was speaking with a bunch of his, oh, I don’t know, very, very, very smart central bankers. Aren’t they smart? And they’re very popular now, aren’t they? And they had a big confab in Portugal and Jay Powell spoke there today. And, you know, it’s a little bit of mission accomplished, frankly. It had that feel, if you saw some of the quotes and some of the clips, a little bit of a George W.

Bush mission accomplished vibe from the aircraft carrier in the Iraq war. Wow. Wow. What a guy, huh? And because he was talking about, yeah, hey, you know what, we’re getting there. Inflation is getting to where we want it, feeling good about things, right. He just stops short of saying mission accomplished. And he really didn’t budge on when they were going to cut rates. Again, very data dependent, etcetera.

[00:07:36]:
But we don’t care. Look, the SVF hunters up now 30%, 30% from just over a year ago when they were supposed to first start cutting rates. The markets clearly don’t care about rate cuts. The markets do not care at all. Matter of fact, the markets are telling us don’t cut rates. Again, we talked to this, Adnan, really, no one else that I know or that I’ve seen is going to mention what we’ve said, what I’m about to say to you, what we talked about a lot here. It’s extremely important. And again, love being a contrarian, love the fact that nobody else is talking about this.

But in the most analogous bull market run to this bull market, 1995 to 2000, the ten year yield average better than 6% was bounced over 7%. The ten year yield today is 4.43%. And yet you hear people talking about how high rates are, oh, mortgages is 7%. Oh my God. My first mortgage was almost 11%. It’s just what we did and we made it work and it wasn’t a big deal. 7% mortgages ain’t a big deal. They’re just not.

This is all mindset, right? It’s what we are told that we should believe. Everything is happening as it’s supposed to in these markets. And so again, if they don’t cut rates, I got no problem with that whatsoever. Let’s just keep doing what we’re doing. But I think this Fed is on the verge of making a mistake. Look it, Tyler covered yesterday. You know, our most important economic indicator is the housing market. We look at housing stocks, of course, as a discounting mechanism, as the stock market is.

[00:09:15]:
And if you follow the housing stocks, XHB, the housing ETF or HGX, the housing index, pull up those charts. Pull up those charts. You’re going to see it’s rolling over. We took profits of about 200% in our housing ETF some time ago now, and we’ve been patiently waiting to get back into, because we love housing. And housing will continue to drive, no question about it, housing, it’s another megatrend. Housing will continue to drive the us economy higher. That doesn’t mean we’re not going to have bouts of turmoil. And again, the Fed overdoing it because, look, the Fed’s been restricted for far too long.

No, rates aren’t really a problem here, but they still shouldn’t be here. The effective Fed funds rate is 5.33%. Again, we’re 1% lower than that on the ten year yield. So the markets are saying cut rates. But of course the Fed wants to believe that they’ve killed inflation. It’s always money printing. Inflation is only one thing. It’s money printing.

It’s nothing else. So again, they know this. Obviously, they’re not that dumb. They know this, but they can’t admit it. They can’t admit that we’re the source of the problem. Right? That can’t be. It’s got to be something else, right? It’s got to be wages are growing too fast or the economy is too hot. Can’t ever be money printing, which of course it is, but the point being housing stocks are telling us something’s changing again.

[00:10:42]:
Is this a sign of trouble? No, but has the fed been known to make mistakes and then have to speed up to fix things? Yes, and that wouldn’t be a positive in of itself, would not be a positive for the markets. Because if the Fed all of a sudden has to go from, oh, we’re not cutting rates to, oh, we’re going to cut rates by a half point or three quarters of a point. If we were to go through a weak spell, some kind of a crisis, banking or otherwise, takes place, right, then we have to cut into weakness. And that’s when the markets get hit. The markets dislike one thing more than all others, and that’s being surprised. Again, I don’t see a risk of that. But the Fed’s too restricted. They should be cutting rates.

But again, so far so good. Honestly, based on the market’s performance, they maybe they should raise rates. Markets would probably double in a year if they did that again, because it’s just not what the public expects. As a contrast, you know, again, when they’re screaming, go left, you want to go right. Tyler just told me this. Interesting. Pensions have reduced their equity exposure by 50% in the last year. Imagine that.

Remember, pensions have to make eight to 10% returns just to have their pensions fully funded. That’s what the actuaries say. And if they’re cutting equity exposure by 50% in the strongest bull market since 1995 to 2001, that we think is going to be stronger than that, longer lasting, broader, et cetera, then pensions are making a big mistake. But again, that’s good. Along with the $6.2 trillion sitting in money market accounts. That’s what we want. We want that fuel for the fire. We want all of these folks on the wrong side of the market to be forced to come back in when the train, as the train has clearly left the station, not leaving, it’s left.

[00:12:30]:
And that fuel for the fire will continue to force the market tire. Those are our new buyers. We want the fear and greed index and all these bears to be as bearish as possible for as long as possible. But I can’t resist pointing it out because it’s just insanity. It really is. It is. It is insanity that people can. I’m going to cover this more in a moment.

We get some, I think, some good data for you here, something we try to cover on regular, at least a quarterly basis to get into some detail so people understand what’s really happening here with this indoctrination campaign and the propaganda. Look, after the rigged election, after the pandemic, after the poison jabs, I think, again, people are waking up. Unfortunately, not fast enough, but at least that process has begun. Okay, again, let’s start with the markets now. Here we go. Dow Jones. I think the markets, we close right at the highs today. Another good smart money hour today.

Dow Jones up 162. The Dow was down almost 100 points midday. And again, here we go again. Four tenths of 1%. SVF 100 up six tenths of 1%, up a solid 34 points. Rush 2000, small caps up just two tenths of 1%. And our leader on the day, exactly what you want to see. Nasdaq up 810% to 1%.

The semis up 1%. SMH, the semi ETF of 1%. So semis lead Nasdaq, Nasdaq leads the broad market. This is a textbook day. Textbook. We’ve had a lot of these, haven’t we? Except for the internals, which are better today. Again, it was, it was solid here. You know what? I want to cover Tesla and some other things at the back end of this, but I do want to get to those.

[00:14:05]:
So make sure to remind me, okay? But this is now, I think it’s never been more important time to be a good stock picker. Being a stock picker, even in a market that might be moving a little sideways with some negative internals, if you can pick stocks and you understand sector analysis and rotation, then it really doesn’t matter as much with the broad market does, as long as the trend higher continues. And that’s what we have happening now. Rotational. This rotational theme we’ve been talking about, Tyler, covered again yesterday continues here. Again with we get one sector gets weak, the rest of the market picks it up. We get the generals are leading, the rest of the market can take a breather. And now when the generals get ready to take a breather next month, the rest of the market will play catch up.

This rotational theme, again, it is textbook early, early bull market action. In our journals today. Again, they were much improved today. Not perfect, but improved. We had Nasdaq with a. I’m just gonna. I’m gonna make it easy. It’s slight beats.

An advanced decline for Nasdaq and volume. Nyse, much better. Two to one positive for advanced decline. Nasdaq. Excuse me, NYSE volume also, two to almost two to one positive on volume. The negative today, it was only a slight negative where new 52 highs, lows, became a slightly negative. But still, from the sector today, from the sector watch, we have to say this is a win for the bulls in our internal watch, and our sector watch saw the same thing. This is a very good day today.

[00:15:40]:
Nine of eleven sectors finished high on the day, led by consumer discretionary of 1.8%. Financials up 1.1%. All of a sudden, KRe is getting out of trouble. Communication services, up eight tenths, 1%. Again, gains across the board. Really nothing to the downside whatsoever. Two minor losses in our sector watch today and our commodity watch again. I’ve got some other things to cover at the end, but I’ll save it for the end.

And our commodity watch today. Where are my commodities? I promise you I’ll find it. I’m getting. This new system of mine is taking me some and getting used to. This is nothing. This is not loading. And I don’t know why. Let me try another.

Another source here. Apologies. Something just happened. Maybe it’s my Internet connections. Really, really slowed down here. Hold on a second. Let me get my backup system real quick, because we do want to cover our commodity watch today, don’t we? Even though they’ve been in the. In the doldrums here.

[00:16:58]:
Here we go. Gold today was flat on the day, 23 38. Silver up $0.20, announced about seven tenths 1% at 29.81. Copper up two tenths of 1% as well at 442 a pound. Crude oil today, again, just hitting. Was it a six month high yesterday? Crude oil down a bit today, but just a little bit. 83.17 a barrel. What a great story for energy stocks and this data center.

This is a great Tesla story as well, right? The demand for electricity for data centers is just, it is an unbelievable story. It’s been talked about some, but not nearly enough. And it may be more of a natural gas and nuclear story, but it’s certainly an oil story as well. But again, we’re talking about electricity uses here. And of course, these power plants are primarily now natural gas and alternative energy, wind and solar. As horrible as they may be with the environment, they are making up a large and larger percentage of our electricity usage or supply at least. But again, today, crude oil down twenty one cents of euro. Eighty three point one seven.

And then bitcoin today was soft. Today, bitcoin down 2% of the day to just right at 62,000. Tesla, what a remarkable day today. Again, the stock put on $60 billion worth of market cap added value today. It’s interesting. Tesla’s market cap is $734 billion. Okay. At the same time, Tesla has four to five.

[00:18:36]:
It’s four to five companies in one. So they’ve got battery storage and battery research. Of course, no one’s better than Tesla in this area. That’s what we’re just talking about with data centers and the ability for Tesla to, again, I’ll cover this more in just a second. But today was about car deliveries. Okay. There was kind of a loss there again, down 5% year over year, back to back quarters of loss of declining deliveries. But they did beat estimates today.

So the stock got off to a really good start again, finishing up 10% on the day to 231 on the day, again adding $60 billion in market value. But it’s Tesla’s energy storage storage business. It’s really starting to gain some traction. They deployed 9.4 gigawatt hours of battery storage in the quarter. That’s a record by more than 100%. So this is something very few people talk about. But Tesla Energy reminds me a lot, reminds me a lot of when Microsoft first got into cloud, right? And everybody said, well, that’s a nice little area. It’s a nice addition, some good diversification for them.

And now it’s one of Microsoft, excuse me, Amazon’s biggest profit centers. I see this as the same thing for Tesla Energy, but again, it’s so much more. We pound the table on this because we want to make sure you own this stock aggressively. It is robotics. It is, of course, EV’s. And now it’s going to be full self driving, and it’s going to be the robo taxi, which is being unveiled just over a month from now on August 8. Huge, huge stories here. And of course, now energy, of course, as well, and they have artificial intelligence.

[00:20:21]:
So you look at all these various divisions of Tesla, and I think I even left one out. What did I leave off here? Well, we’ve talked about it enough. I’m sure you know what I’m talking about here. Bottom line is that it with the total market value today of Tesla, again, of just $734 billion, I believe each of these divisions is going to be worth more than $1 trillion. Our price target is what we get is a ten bagger for us. Okay, so we’re looking at thinking within five years of stock as we better than fifteen hundred dollars a share. So if you’re, if you think you’ve missed the move or the stocks gotten too far ahead of itself, who cares? Honestly, I’ve said it before, I’ll say it again. There’s a few investments that I just don’t care what the price is.

I’m buying them every month or every chance that I can. And they are gold, bitcoin and Tesla. Monthly dollar cost averaging is what we do. It removes the emotion from investing. You take a set amount or at least pick a date, 15th every month. You know, maybe you’re going to add $100 or $1,000 to each investment, but that’s what you do. So it removes all the emotion of trying to time the markets, etcetera, and keep adding to positions. That’s why these low prices are a gift.

That’s how it should be viewed as a gift. So in five years from now, when Tesla’s trading at $1,500 a share or better, I’ll probably be on the low side. We’ll look back and go, thank God that it stayed cheap as long as it did. Thank God for that. It allowed me to pick up another 100,000, 5000 shares or whatever. Same thing with bitcoin. You know, again, I know people are frustrated that bitcoins at 62,000 instead of 162,000, it’s going there. But again, it’s a gift.

[00:22:05]:
The fact that it is this cheap, there is no better supply demand story in the planet. And gold has been just a long term favorite of mine. Love the yellow metal. You know, we’re only $100 or so, have off all time highs. Again, people sound, seem frustrated with this. Not me. It’s a gift. We have a chance to buy it cheap.

This is that bull market. We are in the innovation revolution. We are at without question. We are in the roaring 2020s. Okay? There should be no doubt about that. But if there is, keep listening. I wrote this up. This morning, and I’ll wrap it this right now.

If you’ve read any of my books, then you understand psychological operations and the attack that we’re under. And when it comes to investing and essentially living in a complex world, it’s important to understand this concept because you’re going to hear almost probably, no, I’m probably the only person that you’ll ever hear talk about this, because I’ve been talking about this for a long time, and I’ve heard no one else join me in this either means I’m really wrong or maybe I really got it right. And I believe, obviously, it’s the latter. I think history is proving that is the case. But if you’ve read any of my books, you know that the wake up call for me, for this age of propaganda that we’re in and indoctrination in Psyopt, it began for me, was 911. 911. The day that it happened. I remember I just got back from taking Tyler to school, and I sit down in front of the tv and boom, World Trade Center’s on fire.

[00:23:33]:
And I’m like, what? What do you mean? A random plane full? That doesn’t sound right. And then again, later in the day, of course, we knew. We knew better. But when the buildings fell and it was a free fall collapse, implosion is what it was. Anyone that understands, even on a basic level, architecture and engineering, says, okay, that just makes no sense. Where did all the steel beams go? How did the concrete just turn to dust? And how did the buildings fall to the ground at free fall speed? Anyway, for me, that research process began my wake up call. It opened my eyes and then never to be closed again. Since 911, we’ve seen these same repeating patterns of government control, propaganda, manipulation, and indoctrination play out time and time again.

Little history lesson for you. After 911, we had the Patriot act. Then we had Iraq wmds. Of course, the Iraq didn’t have weapons of mass destruction, but that allowed the two census wars that followed to take place. Then we had Obamacare. Then we had rigged elections. Then we had the pandemic and the poison death jabs. This is all in the last two decades, plus the worst two decades in american history.

There’s not a close second. But if you can take a step back and you can see this from a contrarian point of view, right, then you understand that this is a. This has been a masterclass. It has been a masterclass of being played by the powers that be. And so our job, if we can’t change it, you know, and a few of us have tried, maybe a lot of us have tried to make our voice heard. Hasn’t made much of a difference. Maybe we’ve woken a few people up, but at least we can control ourselves and we can control how we. How we react to things and how we use these as investment opportunities.

[00:25:20]:
That’s really what our job is here at the VRA, of course, but. So, you know, again, about three years ago, Tyler and I started researching the big bribe. We spent about a year writing, researching the book, and during that process, we discovered that there was another big psyop happening and what we’ve called a psyop of negativity. You know, I would imagine most listening to this have heard what I’m about to say about 100 times over the last couple of decades. The average person only has enough money to last three months. So they lose their job, lose their source of income. How many times you all heard this? It’s a lie. Okay? But it’s a lie that’s been told so often, it’s just expected to be true.

It’s not true. It never was true. But it’s just a small sliver of the economic and financial lies being told to us today. So, as we’ve always told everyone, you know what? We don’t have all the answers, but we have a lot of questions, and we understand repeating patterns, and we understand how governments seek and attempt to control people. So we always just say, keep it up in mind. Think outside the box, because this approach is really important to your survival and certainly to your prosperity. And another. This is a gimme, I know, especially to this smart crowd here, but whenever the mainstream media is all saying the same thing, it’s a lie, right? We’ve learned this.

We’re not being told the truth. Again, that’s the very definition of propaganda. Last night, I saw this. This got me thinking about this again. The median Fico score for homeowners is now up to 768. That’s an all time high, right? It’s an all time high. It’s up 20 points over the last decade. That’s a big percentage change over the last decade.

[00:27:08]:
And it got me thinking about the topics we talked about. But it’s been a while since I’ve talked about some of these, and it’s very important. I think this is something that every family member, people that you care most about, should be introduced to this, because, again, you’re just not hearing it just about anywhere else, but you should be. I think the power of this is being in the minority. Again, contrarians have a lot of power. It is a superpower to be a true contrarian and to be a smart money contrarian, it is a superpower and it’s allowed us to beat the markets. I think with so far 17 to 20 years, our average positions of 93% from the bear market lows, we have over 2000% in total gains in less than two years. And again, is because we don’t listen to the crowd.

Matter of fact, again, if the crowd saying do one thing, we do exactly the opposite. It’s really the easiest decision that there is. But more than ever, investors should be very careful who to listen to. Again, I’ve written and warned about this for over a decade, because there are sophisticated strategies at work that try to bend investor sentiment. Again, a sign up negativity. Most of these we’ve talked about often, right, these perma bears, they’re just losing their clickbait users, because they’re not investors. Their business model is. They are list builders.

[00:28:27]:
They know that fear sells. And if they can get you to reply, sign up to their list, go to their website, etcetera, call their phone number, buy their book, they got you. They got you on the list, and now they can start trying to sell you their bullshit products, right? Clickbait. It should be your first sign. Overwhelming negativity. And being a perma bear should be another sign, because we’ve been accused of being perma bulls. If you know us at all, you know that ain’t true, right? We’re not perma anything permanent. If you’re perma anything, you’re doing this wrong, you’re doing it very wrong.

We’re smart money investors. There’s a time to be bullish. There’s a time to be bearish. This is a time to be bullish. But there are these perma bears that don’t look at it that way again, because they’re list builders. That’s just what they’re this, what they do, that’s their business model. Most of 90% of them aren’t even investors. Ask to see their investment returns.

If you want to do a quick test, ask to see their returns, see if they have them on their website, see if they’ll share them with you. Right? We do, of course, we make with every trade we’ve done in the last decade on our vrade website. Every single trade last ten years. I don’t know if anyone else does that. We’re pretty proud of it, along with all our returns, etcetera. Not all are winners, but we put them all there for you. You can see they’re everywhere. The negative, the negativity, the perma bears, these are losers.

They’re everywhere and they’re trying to profit from your fear. So we recommend at least understanding that their interests do not align with yours. But again, as I covered a minute ago, we’ve got something very different happening in the economy, this cyp of negativity. People ask me, and I’m going to cover this a bit tomorrow in our very letter, I said, what’s the purpose of this kit? Why would they want to have a sigh of negativity? I don’t understand that. Okay, let’s think it through a little bit. We have incredible growth taking place. This is the best economy. Again, I’m just telling you, even though you’re hearing the opposite of Mediaev, this is the reality that I’m telling you, and I’ve got the facts to back it up.

[00:30:29]:
American consumers and the companies that we run are the strongest we’ve been in decades. I’m going to share that data with you in just a moment, just to give you a little refresher course. Okay. But if everybody believed that, if that’s what the media was saying, what would the end result of that be? Well, first of all, I’d likely mark a peak in the markets. You don’t want the majority saying that you don’t want them. Again, if the media is all saying it, we don’t want to believe that because that marks the top. So it’s actually good that they’re not. But that’s, that has to do with animal spirits.

There will come a time in this bull market where everyone is going to get hyper bullish. Every bull market has it right. We’ll get there. The sentiment will get there. We’re going to do extreme greed and we will take the prop, we will be taking profits in. It will seem like the hardest thing to do and it won’t be easy because everybody around us is going to be bullish. But that will mark at least at minimum, a short term to medium term peak. We’ll raise a bunch of cash, we’ll sit back, maybe go on a long vacation and wait for the markets to come back down to our levels that we want to buy at.

We’re not anywhere near that now, but more and more people are becoming bullish. But again, the fear ingredient index is at 50. It’s at neutral. There are other indicators, sentiment indicators that have gotten more bullish. But again, we’re just early in that process. It is a process. It does take time, and we’re still early in that process. Still a lot of perma bears, a lot of what I covered a minute ago.

[00:31:56]:
50% pensions have reduced equity exposure by 50%. That won’t be happening at a market peak. They will be all in. Everybody will be hyper bullish and that day will come. So they want to avoid that. The planners. Right. Our propagandists want to avoid.

I understand that. So they got to be negative instead of positive control animal spirits. That’s number one. But the other glaring advantage and reason they would have this slope of negativity is that they want you to be negative so that you don’t invest so they can buy low. They want you buying high. When they all turn bullish, that will be the time to sell. They will be using you again. So we want them.

We want the setup we have now. Because again, they want you negative. They want you out of stocks. They want you negative. They want you not buying real estate. They want you negative. They want you not buying bitcoin. They want you to think the world’s in trouble.

[00:32:57]:
Right. Instead of being an aggressive business builder. Right. And building an aggressive business model of your own, they want you living in fear, folks. That’s the reason that they have a slap of negativity. In case you had that question, I’m going to explain that a little better, as I just did in tomorrow’s very letter. It’s an important question that I just frankly hadn’t thought through. To me, it was obvious, but I got getting questions about that.

So clearly it’s not. But that is why there’s a side of negativity. The reason I just disclosed. But again, as we covered in the big broad, we spent a year researching this and now it’s been almost two years ago we put it out. Americans and companies we own are the best shape in decades. Here’s the proof. All time highs in stocks. All time highs.

Home prices. Credit scores. All time high. All time highs. Net equity in homes. 67% of Americans own at least one home. At least one home. All time highs consumer net worth.

This is maybe my favorite. One third of Americans have a mortgage. Have a home with no mortgage. Homes fully paid off. One third of Americans, again, all time high. Also very big. We learned from the financial crisis. Over the last 15 years, both consumers in american companies have cut their debt by 25%.

That’s to disposable income and to market cap for companies. That’s huge. 25%. And again, you’re not hearing any of this in the media, are you? Of course not. None of it. When I say this, I tell you it is not popular. You would think that people would rejoice when they heard this, but because it flies in the face of the propaganda that they’re getting on their favorite tv show or radio or whatever, right? They’re like, oh, that doesn’t compute that I’m triggered. I can’t go there.

[00:34:34]:
What are you saying? But that can’t be true. The media is not saying that. How could that be true? I’m telling you, we’ve done the research. The data is solid. These numbers are true. Also corporate debt, this is another big one, especially for american companies. As earnings go parabolic corporate debt to market cap is at a 50 year low. So bottom line is both the individual and companies have the ability to lever up.

That’s my process hasn’t even started yet. That’s how early we are in this cycle, understand? This cycle research folks, it is that powerful. And that’s why you got to be all in this bull market. You just got to be all in. Because these are the balance sheet fundamentals that we see at the beginning of powerful economic expansions. Not the end, but at the beginning, at the birth of. So when you add on top of that that we are in an innovation revolution, clearly in the roaring two thousand twenty s and when the early innings of this, this is the best, maybe the single best opportunity we’re ever going to see in our lifetime for significant wealth creation. That’s what we said for a long time.

Stay locked in. Use their propaganda, understand their propaganda, use it to your advantage. Alright folks, that’s it for the day. Hope you had a great day in the event or night. We’ll see you back here again tomorrow after the close.