In today's episode, Kip explores the latest market trends and breaks down another day of all-time highs to close out the week. We'll discuss the current commodity prices and economic outlook, including bullish opportunities in tech stocks and a promising future for Tesla. We’ll also touch on hot-button topics such as job reports, market seasonality, and the potential for significant economic growth aligned with the return of Trump policies. Tune into today's podcast to learn more.

Don’t look back because the market is closed. Good Friday afternoon, everyone. Kip Herriage here with the daily VRA Investing podcast. Hope you had a good day today. Hope your week is fantastic as well. Got a lot to cover today. Some interesting things happening here that we normally don’t talk about. Gonna spend a little time on that.

Paul Krugman, the 25 years as opinion columnist and Pulitzer Prize winning. Excuse me. Yeah. Pulitzer Prize winning economist Paul Krugman is retired. We followed this guy for a long time. I’ll walk you through our road with Paul Krugman here in a moment. Also, we got the jobs report today. Cover that and what that means for interest rates, what we believe it means for future gross domestic product, economic growth under Trump, which if you’ve been listening to us, you already know what we’re going to say there.

[00:00:53]:
This is going to be a magical time. We, look, this has been our theme for a long time. We’ve not deviated from this because we saw this when we were riding the big bribe. We were shocked, frankly, Tyler and I were both shocked by what we were finding by the economic strength that both corporate America and consumers. And I know that that never goes over well. I’ve gotten so much. Tyler and I both have, but we’ve gotten so much negative pushback on this because look, we get it. There’s two Americas.

The first America is crushing it. We get it. Second America is not. So I know how they come to cross. But at the same time, the truth is the truth. And the fact is the markets don’t care about second America. The markets care about the first America. And that’s the point we were trying to make, is, look, our job is here to try to help you make money and make sense of the markets.

And first and foremost, get the direction right. You know, if you get the direction right, half the battle is won. And then, you know, we use our very system to make sure we drill down, get our sectors right, then find our stocks. You know, again, it all flows, but it all flows from the macro. You’ve got to get the macro right. And so that’s really what our point has been, is that when we’re writing the Big broad, we spent a year researching this and writing it. We were like, okay, how? Why is no one talking about this? Why is no one. And no, literally no one was talking about what we were seeing.

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I’m not going to go through all the list again, but you know, I’m talking about like one of the biggies. 40% of Americans own their home without a mortgage. What? How is that not a bigger story? That’s a massive story because it tells you and you drill down through all this data and you see time after time after time that the consumer first America has never been stronger, never in history has been stronger. And then corporate America, exact same thing. I mean when you think about corporate debt to market cap trading at 50 year lows, think about what that means. That means we’ve got when the economy begins to reach. By the way, this is new cycle economy. We’re not, we’re not.

This, this economy and bull market, they aren’t aging, they’re not getting old. These are still in their infancy. That’s what again, so many economists and market strategists are missing this. They think we’re halfway through or late cycle. No, no, no, we’re not. This is early cycle action. When we get to later cycle action, that all this money that’s on the sidelines, right, the $7 trillion money market, all the ability to lever up for the consumer and for corporate America, that’s when that’s going to matter and it’s going to only continue to build from here. That’s why this, when we have, when this bull market really starts.

And I kip what he talked about, we got back to back years up 20% this year is going to be up 25, 30% by the, I think the record’s 31%. So yeah, or 34. I’ll double check that for next week. But you know, we could, we could have a record year in the S500 this year. But that’s not even, that doesn’t even represent what’s going to happen. And this is why we’re so incredibly bullish and why we’ve been. And so you know, again, well, I tell you the truth, I have no problem taking heat for telling the truth because this, that matters. I mean this is why the markets are going up and they haven’t even got to the point where we’re looking at 5% GDP growth because that’s coming.

[00:04:13]:
Just know that that is coming. I wrote this. So we’ve got, by the way, we have a marketing campaign now, our end of year holiday campaign like to take advantage of that. If you haven’t seen our email on this, I think we’ve got it listed on my blog@kiphers.com and we send it out to all our folks into our list. But just reach out to us@supportrainsider.com if you’d like to see that it’s our best prices of the year. Also, if you join, well, you get a free month. You get two free months, depending on how long you want to join for. But we talked about this in the marketing campaign and I’ve said this for a while now.

This is the most bullish that I’ve been in my career. If I’ve done this 39 years, this is, there’s no hyperbole here. I’m gonna sound like Joe Biden. Not a joke, folks. But there’s, this is by far, by far the most bullish I’ve ever been. And now we have Trump coming in for 2.0, the Trump economic miracle 2.0. We’ve got the Trump Doctrine, which we’ve talked about here with you a lot, that again, very few people are talking about animal spirits, Trump returning the power to the people. This is a massive story that simply not enough people are talking about.

But when we get to 5 GDP growth and we will, it’ll happen within 12, I think within six months of Trump’s term starting in, on January 20th, I think within six months we’ll be at 5% GDP growth. And when, this is why the markets are going up now. The markets discount everything, right? And so but when the markets really start discounting, especially if Cathy Wood is right, if Cathie Wood is right and we’re going to go to, we’re going to have a future of better than 10% GDP growth where they believe up to two decades. And again, we’ve talked about this a lot with you here. We’re not quite that optimistic. But they’re talking about, they call it the AI boom, we call it the innovation revolution because it is, it’s much more extensive and deeper than just AI. This is complete innovation taking place at a breathtaking pace. And that is going to, it’s just going to blow us away again.

[00:06:17]:
It’s like living in the Justin’s world that we’re finally there. And so there’s so much change coming, much of it much or most will be positive. There’ll be some negatives too. But for those that see this coming and ready for it, if we’re going to get, if Cathie Wood’s right and we need 10% GDP growth for two decades, trust me when I tell you our 100,000, 100,000 target for the Dow Jones will be really low, folks. We’ll be talking about 150,000. This is that bull market. So we’re staying locked in. We know you are too.

Again, we always appreciate you Being with us. Thank you for your feedback. Our podcast is growing. We still have a very kind of a niche market. I don’t think I’m everyone’s style. I’ll talk about anything and everything. And I, y’all, frankly, I get it. I don’t really like following people that are really opinionated about every different topic or whatever.

But I just like to talk about what’s important to me because this all does combine to factor into market performance. It just does. At least that’s what I found in my career. And so we find it interesting so we talk about it. And again, thank you for being here with us. Thank you for loyalty and love your feedback. Please keep that coming. So again, three weeks now in a row we’ve had all time highs, S P 500, Nasdaq, Dow Jones did not this week but very close to it.

[00:07:40]:
But we’re also seeing a rotational theme taking place here. What Tyler talked about yesterday, we’ve been talking about this now for a while that you know, we go from the markets really broad, really broadening and the magnificent seven, you know, and mega tech, mega tech caps, mega cap tech stocks are not performing. And now we flip right back to it. And now we’re right back to that again where the Mag 7 like Tesla. Talk about that more in a moment. What a day, what a week, What a run. Tesla’s up 61% from the election. Right.

And again, you know, we’re counting the table on this and it’s just getting started. You know I wrote this morning, we’ve been saying this for a while. I said, you know, three months ago I could not believe Tesla’s below 300. I can’t believe it’s below 400. It’s getting very close now to 2400 today, closing 390, up 20 points on the day, up three and five and a half percent of the day. Again up 61% from the election. You ain’t seen nothing yet. This stock will be, will break to all time highs by year end, which is only 413.

It’s only 23 bucks. We have another today essentially Tesla will be at all time highs. But, but what’s going to happen? I believe by the end of February there’s a specific reason why I have that date. I’ll maybe write that up next week. I won’t bore you the details now, but I believe by the end of next February that I believe Tesla will be over 500 a share. And again, just, still just getting started. It’s a 10 bagger. We recommended at 174.

[00:09:11]:
I’ve owned it since 18. It’s a long story why I didn’t recommend it sooner than the vra. Basically it got away from us. Now we kept waiting for a pullback that finally happened, but we’re in at 174 and, and looking for a 10 bagger from there. That’s what we’ll call it. $2,000 a share in five years. There is no better story than Tesla. But again, the, the rotational theme has now flipped back where most stocks are not going up.

We’ve seen it in the internals all week, haven’t we? These have been not good internals, not horrible, but not what you want to see in a bull market with all the indexes hitting all time highs. You really want to see broad, a broad move higher with solid internals, you know, better than 2 to 1 advanced decline in volume every day. We have not had that. Matter of fact, we hit a lot of days with negative internals for some of these readings. Primarily advanced decline. NASDAQ volume has been stellar all week, you know, better than 2 to 1 pretty much every day. But that’s what, that’s, this rotation is extraordinarily bullish. And also remember this, this is how, this is how the markets keep going up without getting overbought.

So now these, you know, these, these big tech stocks are going, only going higher primarily and the rest of the market is cooling off. And that’s what supports this rotational theme that is so incredibly bullish for the future. Move higher. And I think that, you know, again, Tyler and I just talked about this. Seasonality is not great here. I know we’re in the best three months of the year. Everyone knows that. Everyone’s talking about the Santa Claus rally.

[00:10:48]:
Well, that’s, that, that’s really has nothing to do with where we are now, you know, but December is a great, best month of the year. However, the first week of December is not great. It’s not bad, but it’s also not great. Guess what’s about to change. You start talking about the last two weeks to last the 17, 18 days of the year and now we’re talking about a whole new ball game. So the fact that this market’s been rotating coiling the way it has, right? With bad, pretty bad internals, or I should say weakish internals, but not going lower with what’s in front of us. Yeah, it’s gonna be a fun end of the year. And then as I’ve said before, and I hate to, I hate to Jump the gun.

But I think if you’re looking for an ideal time to take some profits and again, we’ll look at all our indicators and see, I think the inauguration, I really, I think the inaugural, I think we’re going to melt up into the inauguration, which is if you know how the public operates, that’s when they’ll get bullish. Everyone’s got all the investors that don’t know how the markets work are going to go, wow, okay, the market’s been going straight up. Trump’s about to be inaugurated, I have to buy stocks. And that’s when all that 7 trillion starts to drain from money markets. I think we’ll see that and that’s when we’ll be taking some profits or hedging, but who knows then, right? We’ll look at all our indicators, we’ll report that to you. And because again, right now we’re just, we’re just nowhere near, we’re just nowhere near an area where we would, even though we are hitting heavily overbought to extreme overbought on the very system, on our, on our momentum oscillators, we are, we are hitting that on some of these indexes. We covered that this morning in a very letter. That’s just more of a short term synopsis of where we are now.

Like when we get to this level of overbought and you know, NASDAQ’s there now, SPF hundred essentially it is after today, it’s there. We’re pretty much there. Small caps are not, by the way, but we get to this level of overbought, this is when our discipline takes over. We don’t sell. If you’re a day trader, do you want to take some profits? It’s up to you. That’s not what we’re doing. What we’re doing, this is when we use discipline and we just pause our buying, right? Let our cash levels build up a little bit, stop, you know, stop putting new money into work in the markets except in stocks like Tesla. Again, that, that is not extreme verbot.

[00:13:09]:
Tesla is still a buy. Bitcoin has worked off those extreme robot levels that we told you about two weeks ago and now, you know, blasted through a hundreds right back at it now. But now that, that, that shake out to what, 96,000, I think the low was after hit 103, 5 or 104. Now the momentum oscillators are actually, some of these are nearing oversold levels. And so that’s the magic of understanding, I think the, the, the flow to the markets and Pattern recognition, that is the basis of technical analysis. And we keep it simple. I’m a. I’m a very.

Tyler’s much fancier than I am. He’s. He’s much smarter. He’s. He. Trust me when I tell you, Tyler could do 10 things at once and not a problem because he does it every day. For us here, we. We should probably have at least three more employees than we have right now.

But Tyler wears all those hats and so saves us a lot of money. I will tell you, but I’m a simple Texas boy. I’ve made every mistake in the book. But now, after doing this 39 years, I’ve learned from those mistakes. I don’t like making the same mistakes anymore. And pattern recognition is what we focus in on. It’s the basis of the bureau investing system. But we keep it simple.

[00:14:30]:
And for me, that works. You know, there are a lot of technicians that go a lot deeper, dig a lot deeper. Same thing with fundamental guys. I. More power to them. I love reading their stuff. It helps us in our work. That’s just not how we approach it.

We want to get the macro right. We’re going to be on the right side of the market, and we want to drill down and be in the right sectors, right stocks, and then we want to time the market. And again, anyone that says you can’t time the market, they just don’t know what they’re talking about. It’s just. It’s just that simple. You absolutely can time the market. We do it every day, don’t we, in our daily lives, we’re always looking at, you know, at what we’re going to spend for this. Oh, look at the price of that.

That’s gone up. Look at the currencies. When we’re traveling, we. We time everything in our own lives. And so market timing is just something that we also time. And so that’s, that’s where our focus is. That’s where we are now. Again, we’re not taking profits, but we are pausing our buying in some of these.

[00:15:24]:
But it’s spotty, you know, because as I said a minute ago, Tesla’s maybe after day, it’s. It’s reaching extreme robot. But it wasn’t there to start the day. Same thing with Bitcoin. Again, back to a buy here by the dip. And anyway, that’s. That’s how we’re approaching it. Okay, Paul Krugman.

I, I really should have started with this. Paul Krugman, again, is the self described smart guy. Paul Krugman, who I call the savant. Also known again, New York Times, Pulitzer Prize winning economist Paul Krugman. Tyler had to take one of his classes at Southwestern University. Great, great liberal arts school here in Texas. Been around. I think it’s the oldest school in Texas.

They call it like the rice of the rice of Texas or something. I’m sorry, there is a rise in Texas. Sorry. It’s like the, it’s like, it’s like an Ivy League school here in Texas. They, they do a great job educating their people. They got very liberal though. But anyway, the point being, one of Tyler’s economics classes, he had to take a class that focused for the entire semester on Paul Krugman’s book on economics. And I remember the day he told me this, and he goes, okay, here’s a list of books I gotta buy.

[00:16:39]:
I said, whoa, whoa, you’re buying a book from Paul? Your class is focused on Paul Krugman? This guy is an idiot. And I, and I, and I said it. Yeah, I mean, maybe just to make a point, but he kind of is. He’s finally retiring after 25 years at the New York Times. Listen to these calls. And we’ve talked about this over the years a lot, okay, but listen to this. This is all, these are his words, okay? These are his Nostradamus like market calls, the investment calls that he’s made. In 98, Paul Krugman said this.

Exactly. In 1998, it will become clear that the Internet’s impact on the economy is no greater than the fax machine. I remember when he said this, and we’re all like, he’s kidding, right? He’s got to be kidding. He wasn’t. He even backed it up. As years went on, he still finally he, you know, acquiesced and said, okay, I clear, I was wrong. But, but he supported that view for several years after the dot coms really got going. Then 2015, again, exact quote, bitcoin has no future.

[00:17:46]:
Bitcoin has no Future. Bitcoin is $300, then 100,000 now. Paul Krugman, ladies and gentlemen. And then finally the last quote I’ll give you again, exact quote from 2016, just before the election. If Trump wins, it will crash the economy. And the stock market obviously didn’t happen. Stock market went up 30% from the time Trump was elected. At the end of 2017, the economy hit 5% GDP growth rate.

So, Paul Krugan, hey, good luck in retirement, my man. You made a lot of US money by doing exactly the opposite of what you said. We appreciate you for that. Now Jim Cramer will take that mantle and a lot of us again, I really hate Jim Criminal makes so many calls. And I do agree that like right now he’s super bullish on Tesla and he’s super bullish, I believe bitcoin as well. Well, we agree. So it’s not like he’s always wrong. But, but Kramer makes, you know, 100 calls a day.

Right. It’s, it’s kind of a clown show because no one can trade that much and make money and he doesn’t. Jim Cramer blocked me on Twitter many years ago because I asked, I asked to do an interview with him. And I, and I, and I asked on Twitter through a DM and he goes, what’s it about? And I said, I want to talk about why. About the challenge you, you’ve had in beating the markets. Instablock, insta block right there. Just for asking for an interview, to have an honest interview. Because he doesn’t.

[00:19:18]:
He beat the markets one year out of 10 at that time that we look back on it and I don’t think he’s a matter of fact, he hasn’t gotten any better. He loses to the markets almost every year. And this is a guy that’s out there putting himself as an expert. Clearly a very bright guy. Look, I used to watch him. He’s entertaining, he’s extraordinarily bright. He’s got a memory that is just unbelievable. Okay.

And yeah, you can learn a lot from listening and watching Jim Cramer. No question. I wouldn’t, I just wouldn’t pay attention to his short term calls. Right. And I would, I think what happened with Kramer and people on Twitter today were asked because I’ve kind of known for my Paul Krugman comments on Twitter, I mean, kind of known by a few people maybe. And then I had someone reach out today and said, kip, I couldn’t wait for your tweet. A post on Krugman today. And when are you gonna do your dream? I can’t wait to see your Jim Cramer when, when he retires.

First of all, I don’t know they’ll ever retire. He doesn’t strike me as a retiring type, but I know, I know. I can tell you when things started going bad for Jim Cramer. He got number one. He got divorced, if you know the story or not. His first wife, I think he’s remarried now. I know he has his first wife, though, worked at his hedge fund with him and he wrote about this, talked about all the time, was extraordinarily Bright. She got the market.

[00:20:39]:
She knew timing. She had a good sense of it. Women almost always do. Women investors and traders are so much better than almost every guy I’ve ever worked with. And there have been studies done on this that women have a better sense of things. They don’t get wrapped up in the fear and the greed. And that’s when so many people make mistakes. Again, buying at tops, right? Women understand buy low, sell high.

There’s a discipline that makes sense for them. I can’t explain it, but I know it’s true. The women I’ve worked with had been extraordinarily better, have been extraordinarily better than I had been at timing the markets. I don’t know that I’m pretty good now about it, right? But again, early in my career, so you know that then they got divorced. Number one, that’s what changed for Kramer. Here’s what changed. Number two, I’m sitting here watching cnb. I don’t watch.

I haven’t watched CNBC in four years now because of the pandemic and the propagandist that they became. I just, I boycotted it. Never gone back. Haven’t watched it once. But I was watching one day and Kramer all of a sudden made the shift and he said, oil companies are going under and this climate change thing is real. And I was like, he just sold out to the globalist. That was it. That was the first moment I saw it.

[00:21:50]:
And then all of a sudden, his look started changing. I think it’s karma, folks. I really do. And I believe in it. I. And then second thing that happened, and you probably know this story as well, this is the, this is, this is evil. This showed me that he had completely sold out and he was no longer just not, not, not, not good at picking, at picking stocks in the markets. But he really sold out during the pandemic, Kramer, after the vaccines had been out and there was a lot of people that didn’t want to take them, and now the mandates were out.

I mean, again, all this evil time went through. Fauci, who’s got to rot in hell, okay? He’s going to get, probably going to get pardoned. And I mean, it’s not, It’ll be, He’ll be, he’ll be, he should be banned from proper society. But, but, but, but he will be forever known as someone very close to, you know, Adolf Hitler’s time, right? And all the amygdala medical experiments they did then on Jews and on children. I mean, just complete evil. That’ll be Fauci. But when people were resisting taking the vaccine, Kramer on live tv, on CNBC one day and said this. I believe that the US Military should be used to forcibly vaccinate Americans against their will.

Yeah, there’s tape of it and everything. So there you go. When Jim Cramer does retire, if he does, I look forward to writing up his retirement post for X. I can promise you that. All right, good luck. Good luck. Paul Krupp. You seem like a nice enough guy.

[00:23:32]:
Wish you well. Let’s see here. Oh, I said I was going to talk about rates. Oh, the jobs report. Let me just, by now you’ve all seen it. Look, it was kind of, it just really pretty much met estimates. The one thing that stood out to me, unemployment rate is up to 4.2% now. That’s a headline number.

It frankly doesn’t really matter. But the Fed watches this and people watch this. I don’t think it matters though, because Trump’s coming in. That’s why I’m not going to pay attention to these reports anymore because I know it’s, I believe, I know it’s coming and this is all Biden stuff. I just don’t care. But, but, but because animal spirits are returning, you know, again, that’s why the market’s going up. That’s why the economy is going to continue getting better. And just know this, folks.

I mean, this is again, magical time coming, folks. This is going to be extraordinary. We had the worst two decades in American history. I think it’s time for two incredible decades. That’s why Cathie woods, when she said that we could have 10% GDP growth for two decades, that was like, wait a minute, we’ve been saying we’re owed two great decades. This is simpatico. So she does great work. But we are looking for extraordinary economic growth.

[00:24:40]:
And I don’t think we’re going to get a red hot jobs market. There are going to be a lot of layoffs happening in the government. If a million people get laid off with the work that Musk and Divic are doing under Dogecoin, Musk just, he’s a funny dude. Here we have a shitcoin, and that’s what Doge is, a shitcoin that is more valuable than about 10American major brands. It’s just you, that’s how much money is sloshing around. That’s how you know we’re in the roaring 2020s. Something like Doge, which is unlimited printing and minting of coins. Right? There’s, there’s almost.

I think they have good execution speed, but I don’t think there’s any other reason to hold this but its values. Market cap is bigger than so many great American brands. Gm, Carnival Cruise Lines. I can just keep going, going, going and it just should. This should not happen in the same world. But we’re not in the same world when the roaring 2020. So it’s only going to pick up speed with the innovation revolution. That’s our theme.

We’re sticking to it. But the question then becomes okay Kip, if you’re right, the economy is going to be super hot, you know, GDP growth. What are they going to do about rates? Well that’ll be interesting to see. Rates will probably stay more elevated. They would have otherwise. Remember during the dot com boom we had the average 10 year yield during that 1995-2000 move hot, melt and move higher. Which I was fortunate enough to be right in the middle of. Love.

[00:26:06]:
Loved it. It was a blur. We didn’t know what was happening. I took three companies public. It was fantastic though. Made a lot of money for our clients. It was a phenomenal run. I exited stage right when I thought the top was in place.

I just read Extraordinary Popular Delusions and the Madness of Crowds because my mentor Michael Metz at Oppenheimer recommended it. Said you need to read this book. And so I read it. I’m like so you’re telling me the bubble is here? And he goes, I’m not telling you anything. What do you think? You know that he was a great teacher. But that’s, that’s when I left Wall Street. Got out about four months before the top. Save my clients a lot of money because we were heavy in tech stocks and that took some time off and started the year in 2003 anyway.

But the average 10 year yield was 6.1% with spiked over 7%. So it’s not that the markets can’t go higher if rates stay elevated. I just don’t think that they’re going to. And the reason that this has been again another one of our macro themes is that rates are going to go lower for a couple of reasons. Number one, right now they’re just too high. Okay. And we’ve seen that right rate the 10 year now down to 4.15%. You know, so many people when the 10 year hit 5% then it popped up again to 4.7, then 4.5.

[00:27:20]:
You know, you look at these lower highs, we’ve had lower lows. It’s really a great pattern here. You Know you have the perma bears or the bond market vigilantes coming out and say, oh, here we go, rates are going, rates going 8%, 10%. No, they’re not. They’re going to keep going lower. Number one, there’s a global phenomenon here that is very hard for me to make sense of. And these are the kind of things, when I see these, I go, there’s something not right about this. But it tells me, I think, what’s going to happen next in this case, when global yields, let’s say, for example, I just, I like to use Germany and Japan.

When Germany tenure is at 2%, when Japan’s tenure is at, what is it, half percent or something, but ours at 4%, what’s up with that? We’re king shit. There is no competition for the U.S. economy. We have the safety and security of the backing of the US government. Why are I yields at 4.15% more than double Germany’s? Why is that? And it’s because it shouldn’t be that way. And so serious global institutional money flows will continue to pile into US debt, swamping supply, demand swamping supply. This will force rates lower. It will continue to.

And again, I don’t watch a lot of TV anymore. I don’t, but I read a fair amount. I don’t see anyone else saying this. And it’s the most obvious point of all. Why aren’t, why isn’t everyone focused on this? Because they sure they should be. Because rates are determined by the big money, by central banks and all their buddies. And so this is an anomaly. And I think it’s a great, I think it’s a great hedge here.

I think this is a great trade you can put on here where you buy U.S. debt. And if you wanted to short. I don’t think I’d even do that, Franklin. I think I’d just say the players buy U.S. debt and buy U.S. stocks. That’s the play.

[00:29:18]:
Because yields are going lower, markets going higher. And the other point, again, we’ve made this point for a long time as well. The innovation revolution is going to continue to force rates lower because we’re going to have not just disinflation, which we clearly have now, if you notice the, the preferred inflation deal of the fed, the core PCE is back down to 2% now, just barely over 2%. That was the target, right? So they should keep cutting. And now, by the way, the. I don’t know if you hear my dog back barking downstairs, but he is barking like crazy. He normally doesn’t do that. I’m just making sure nothing’s wrong.

Okay, he’s, he’s set up here. Big old, big old lab we have. Great dog. There’s 85 probability that the Fed’s going to cut in this month. 85 Another quarter of a point. And that’s why they’re going to keep cutting because disinflation, we believe within a couple, three years will turn into pure deflation because of the innovation revolution. This innovation does. It brings prices down again.

You could not have a better setup. It is magical. I think I sound a little, maybe a little stranger. I say that, but that’s the word that keeps coming to mind. This is a magical time to be an investor, to be an American. And we’re owed this. We are absolutely owed this. Okay, let’s take a look under the hood today.

[00:30:44]:
That’s here. I think we covered everything. We’ll come back to Bitcoin. I want to talk about that Tesla just a little bit. First of all, the again, Tesla, I just covered quickly again, sub 61% from the election. Do you think the $250 million that Elon Musk spent to help get Trump elected and did he ever. Do you think that $250 million well spent. Right.

61% from the election. Just a house on fire and there is no reason for it to stop. And let’s look at the under the hood today again. This has been the case all week. They were a little better today. NASDAQ today had about. It was 1.8 to 1 positive on advanced decline. That’s the best of the week, by the way.

Volume for NASDAQ was even stronger. Almost. Excuse me, two and a half to one positive for NASDAQ on volume. We also had about 100 more stocks week low. NYSE negative on advanced Decline by about 300 issues. Volume negative for NYSE again. This is what we’re talking about, this rotational theme. Most stocks aren’t really going up now.

[00:31:52]:
That’s that rotational theme is so incredibly bullish for the market’s medium long term. In fact, we’re not going lower here, especially with seasonality where it is. We’re getting ready to ring the bell into year end. Okay, be ready for that. But again, only slightly negative volume for nyse. But only slightly negative in our commodity. Excuse me, sector watch today, same thing. Here we go again.

Four sectors finished higher. Seven finished lower. Not a lot of, not a lot of damage done. But if you notice energy stops, stocks were getting hit again. Energy stocks down 1.5% today. Utilities down 1% today. Don’t know why that is. Rates are lower to the upside.

Consumer discretionary up 2.4%. There’s a tell consumers. People are buying things that cost a lot of money. Consumer discretionary stocks are hot. That’s another great sign for the economy. Again, animal spirits coming back. All these pieces falling into place of the puzzle. And communication services also up 1.3% today.

[00:32:53]:
Now commodity watch kind of quiet again. This is frustrating because here we have gold that only like 100 bucks away from all time high. The mining stocks are doing nothing. Been a lot of fear about of course, first of all, bitcoin sucking all the oxygen out of the room. And there’s been a lot of fear about okay if they’re going to cut all these expenses and slow our debt, then doesn’t that mean a goal will be less important and less needed? No, because even though they’ll be cutting, we’re not this, these debt levels are going to continue to grow at an alarming level. Especially with Rachel. They are, there is, this is a, as much as I love the Trump story, what they’re doing with Doge, everything. Gold is going to continue to rise.

Right? This is a great story here. We are buyers of gold, silver and the miners on this dip. The charts all look the same by the way. And we are buyers. I think you’re going to have another very strong year for gold. It won’t look, it’s not going to match bitcoin here. Bitcoin is now next level. It just is.

I mean I, I, I’m a gold bug. This is, was not easy to admit for me but the bitcoin bulls of course were bitcoin bulls as well. But, but they’re right. They’ve been right. And this week when Jay Powell at his speech he gave when J. Pal said bitcoin is simply digital gold, that those words mattered. Those words mattered a lot. And so yeah, it’s gold will still do well, but it won’t be in the, in the, in the category of bitcoin.

[00:34:29]:
We just haven’t, this is the best investment of a lifetime, folks. It’s certainly the best supply demand story of all times in my opinion. And it’s just an extraordinary story. Wait until the strategic reserve is set up in the US for everyone’s going to follow our lead and then sovereign wealth funds are going to be buying. Everyone’s going to be, this is going to be insane. We’ll still be recommending at a million. You must own bitcoin even if It’s a sliver. Put something away, you know, buy a little bit, you start to get more comfortable with it.

Keep adding your position. Do it every month, dollar cost average and that way you don’t get hurt on a big shakeout. There’s no reason to jump in with a hundred thousand or a million dollars in bitcoin right now, unless that’s what you want to do. I’m not talking out of it because it probably is the right move. But start small and then build the goal today up six and a half bucks an ounce at 2654. Silver down five cents. Now it’s at 3148. Copper essentially flat on the day at 419 a pound.

Again copper is another great story. With the economic growth we’re going to have us and globally, but primarily us going forward the world will, will grow because of us. But that still makes almost no sense to own anything other than US stocks and Chinese tech stocks. I think that’s, that’s where we’re positioned. I think that’s a smart money play. Crude oil today Again down another 1.6%. Down one point about 12 on the barrel did on the day at 67:18. And finally today bitcoin again.

[00:35:54]:
What Jay Powell said about bitcoin digital gold, that’s, that is gold, right? And I think with bitcoin trading here right around 100,000. I think this is, I think I’d like to see it trade around this level for at least a couple of weeks. I like to see it base. I’d like to see a hundred thousand become the new base. I won’t have to worry about a big shakeout if we can get over a hundred thousand and have it as the new, the new support level again. At first it’s resistance, then it becomes support. That is hugely bullish technically speaking for bitcoin. And, and then once, once we based over 100,000.

The move to 150 is going to happen real quick and it, it could happen, it could happen by year end. That wouldn’t surprise me at all. Just like the move in Tesla. It would not surprise me at all. We’re long and strong. Recommend you be so as well. All right folks, that’s it for today. Hope you had a great day, an even better weekend.

We’ll see you back here again Monday after the close.